Head-To-Head Contrast: Kyndryl (KD) versus Its Rivals

Kyndryl (NYSE:KD) is one of 273 publicly-traded companies in the “IT Services” industry, but how does it contrast to its peers? We will compare Kyndryl to similar companies based on the strength of its earnings, valuation, institutional ownership, risk, analyst recommendations, profitability and dividends.

Risk & Volatility

Kyndryl has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Kyndryl’s peers have a beta of 2.16, suggesting that their average stock price is 116% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Kyndryl and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	7	0	0	1.78
Kyndryl Competitors	2009	5682	9511	343	2.47

Kyndryl presently has a consensus price target of $17.67, suggesting a potential upside of 3.52%. As a group, “IT Services” companies have a potential upside of 23.69%. Given Kyndryl’s peers stronger consensus rating and higher possible upside, analysts plainly believe Kyndryl has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Kyndryl and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kyndryl	$15.09 billion	$199.00 million	48.76
Kyndryl Competitors	$3.51 billion	$223.00 million	-23.79

Kyndryl has higher revenue, but lower earnings than its peers. Kyndryl is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Kyndryl and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyndryl	0.52%	13.21%	1.37%
Kyndryl Competitors	-190.51%	-32.79%	-8.37%

Insider and Institutional Ownership

71.5% of Kyndryl shares are owned by institutional investors. Comparatively, 36.4% of shares of all “IT Services” companies are owned by institutional investors. 2.0% of Kyndryl shares are owned by company insiders. Comparatively, 20.4% of shares of all “IT Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Kyndryl peers beat Kyndryl on 7 of the 13 factors compared.

About Kyndryl

Kyndryl Holdings, Inc. is an information technology services company that helps organizations design, build, manage and modernize the technology systems they rely on for daily operations. Its services include managing cloud and data-center environments, applications, networks, mainframe systems, cybersecurity and digital workplaces. The company was formed from IBM’s managed infrastructure services business and began operating as an independent public company in 2021. Kyndryl serves customers across a range of industries and geographies, helping them maintain and update complex technology environments.