Nebius Group (NASDAQ:NBIS – Get Free Report) and Kyndryl (NYSE:KD – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.
Profitability
This table compares Nebius Group and Kyndryl’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nebius Group | 4.55% | -6.03% | -2.24% |
| Kyndryl | 0.58% | 12.24% | 1.33% |
Analyst Ratings
This is a breakdown of current ratings for Nebius Group and Kyndryl, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nebius Group | 1 | 6 | 11 | 3 | 2.76 |
| Kyndryl | 2 | 7 | 0 | 0 | 1.78 |
Insider & Institutional Ownership
21.9% of Nebius Group shares are held by institutional investors. Comparatively, 71.5% of Kyndryl shares are held by institutional investors. 2.0% of Kyndryl shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Nebius Group has a beta of 4.18, indicating that its share price is 318% more volatile than the S&P 500. Comparatively, Kyndryl has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.
Valuation & Earnings
This table compares Nebius Group and Kyndryl”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nebius Group | $529.80 million | 105.58 | $82.50 million | ($0.03) | -7,369.00 |
| Kyndryl | $15.09 billion | 0.17 | $199.00 million | $0.37 | 31.69 |
Kyndryl has higher revenue and earnings than Nebius Group. Nebius Group is trading at a lower price-to-earnings ratio than Kyndryl, indicating that it is currently the more affordable of the two stocks.
Summary
Kyndryl beats Nebius Group on 9 of the 15 factors compared between the two stocks.
About Nebius Group
Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.
About Kyndryl
Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.
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