Gartner (IT) & Its Rivals Financial Review

Gartner (NYSE: IT) is one of 162 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its rivals? We will compare Gartner to similar businesses based on the strength of its institutional ownership, dividends, risk, analyst recommendations, valuation, earnings and profitability.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Gartner $2.44 billion $193.58 million -343.82
Gartner Competitors $2.94 billion $321.89 million 346.41

Gartner’s rivals have higher revenue and earnings than Gartner. Gartner is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

93.2% of Gartner shares are held by institutional investors. Comparatively, 61.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 4.3% of Gartner shares are held by insiders. Comparatively, 16.3% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Gartner and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gartner 0 3 7 0 2.70
Gartner Competitors 634 4244 6805 156 2.55

Gartner presently has a consensus target price of $131.89, suggesting a potential upside of 12.82%. As a group, “IT Services & Consulting” companies have a potential upside of 3.44%. Given Gartner’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Gartner is more favorable than its rivals.

Profitability

This table compares Gartner and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gartner -1.25% 57.60% 5.49%
Gartner Competitors -9.01% -292.52% -2.49%

Volatility and Risk

Gartner has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Gartner’s rivals have a beta of 1.12, indicating that their average stock price is 12% more volatile than the S&P 500.

Summary

Gartner beats its rivals on 7 of the 13 factors compared.

About Gartner

Gartner, Inc. is an information technology research and advisory company. The Company works with clients to research, analyze and interpret the business of information technology (IT), supply chain and marketing within the context of their individual roles. It operates in three segments: Research, Consulting and Events. Research segment consists of subscription-based research products, access to research inquiry, peer networking services and membership programs. Consulting segment consists of consulting, measurement engagements and strategic advisory services. Events segment consists of various symposia, conferences and exhibitions. It provides insight through reports, briefings, tools, access to its analysts, peer networking services and membership programs that enable its clients to make decisions about their IT, supply chain and digital marketing initiatives. Its consultants provide fact-based consulting services to help clients use and manage IT to optimize business performance.

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