Financial Analysis: Wipro (NYSE:WIT) versus Unisys (NYSE:UIS)

Wipro (NYSE:WIT) and Unisys (NYSE:UIS) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Analyst Ratings

This is a summary of current ratings for Wipro and Unisys, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	1	2	0	0	1.67
Unisys	1	1	3	0	2.40

Unisys has a consensus price target of $5.67, indicating a potential upside of 114.24%. Given Unisys’ stronger consensus rating and higher possible upside, analysts plainly believe Unisys is more favorable than Wipro.

Profitability

This table compares Wipro and Unisys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wipro	14.25%	14.97%	9.68%
Unisys	-17.42%	-26.77%	3.76%

Valuation & Earnings

This table compares Wipro and Unisys”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wipro	$9.87 billion	2.17	$1.41 billion	$0.14	14.61
Unisys	$1.95 billion	0.10	-$339.80 million	($4.78)	-0.55

Wipro has higher revenue and earnings than Unisys. Unisys is trading at a lower price-to-earnings ratio than Wipro, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Wipro has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Unisys has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Insider and Institutional Ownership

2.4% of Wipro shares are owned by institutional investors. Comparatively, 86.9% of Unisys shares are owned by institutional investors. 1.0% of Wipro shares are owned by insiders. Comparatively, 11.6% of Unisys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Wipro beats Unisys on 8 of the 14 factors compared between the two stocks.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.