Comparing Syntel to its peers
Now let’s look at an analysis of Syntel compared to it peers in the following metrics:
- The PE (price-to-earnings) ratios of Syntel (SYNT), Cognizant Technology Solutions (CTSH), Infosys-ADR (INFY), VMware (VMW), and Wipro Limited-ADR (WIT) are 16.71x, 26.20x, 20.06x, 26.90x, and 21.67x, respectively.
- The PBV (price-to-book value) ratios of Syntel, Cognizant, Infosys, VMware, and Wipro are 3.71x, 4.64x, 4.61x, 3.22x, and 4.45x, respectively.
- The EPS (earnings per share) of Syntel and Infosys are $0.92 and $0.23, respectively, in 3Q15.
Thus, based on PE and PBV, the competitors have outperformed Syntel.
ETFs that invest in Syntel
The SPDR Russell 2000 Low Volatility ETF (SMLV) invests 1.4% of its holdings in Syntel. The ETF tracks an index of small-cap stocks selected and weighted by low volatility and other factors over the past 12 months.
The SPDR S&P Software & Services ETF (XSW) invests 0.63% of its holdings in Syntel. The ETF tracks an equal-weighted index of software and services companies.
The Guggenheim Mid-Cap Core ETF (CZA) invests 0.46% of its holdings in Syntel. The ETF tracks the Zacks Mid-Cap Core Index, a proprietary selected portfolio of 100 midcap stocks that seek to outperform pure market-cap indexes.
Comparing Syntel and its ETFs
ETFs that invest in Syntel have outperformed the company in some metrics, but underperformed in terms of other key metrics:
- The year-to-date price movements of Syntel, SMLV, XSW, and CZA are 2.9%, -0.97%, -47.8%, and 0.91%, respectively.
- The PE (price-to-earnings) ratios of Syntel, SMLV, XSW, and CZA are 16.71x, 20.57x, 81.59x, and 16.90x, respectively.
- The PBV (price-to-book value) ratios of Syntel, SMLV, XSW, and CZA are 3.71x, 1.73x, 3.76x, and 2.21x, respectively.
As you can see, the ETFs outperformed the company based on PE. However, Syntel is way ahead of ETFs based on price movement and PBV.