Comparing Insight Enterprises (NSIT) and Its Competitors

Insight Enterprises (NASDAQ: NSIT) is one of 168 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Insight Enterprises to similar businesses based on the strength of its earnings, analyst recommendations, risk, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Insight Enterprises has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Insight Enterprises’ peers have a beta of 1.11, suggesting that their average share price is 11% more volatile than the S&P 500.

Earnings and Valuation

This table compares Insight Enterprises and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Insight Enterprises $5.49 billion $84.68 million 13.55
Insight Enterprises Competitors $2.97 billion $320.86 million 327.82

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

Profitability

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

Net Margins Return on Equity Return on Assets
Insight Enterprises 1.53% 14.90% 4.51%
Insight Enterprises Competitors -8.66% -280.38% -2.21%

Insider & Institutional Ownership

96.6% of Insight Enterprises shares are held by institutional investors. Comparatively, 61.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.4% of Insight Enterprises shares are held by insiders. Comparatively, 16.0% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Insight Enterprises and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Insight Enterprises 1 1 1 0 2.00
Insight Enterprises Competitors 657 4329 6886 159 2.54

Insight Enterprises presently has a consensus target price of $50.50, indicating a potential upside of 38.02%. As a group, “IT Services & Consulting” companies have a potential upside of 5.37%. Given Insight Enterprises’ higher possible upside, equities analysts plainly believe Insight Enterprises is more favorable than its peers.

Summary

Insight Enterprises beats its peers on 7 of the 13 factors compared.

About Insight Enterprises

Insight Enterprises, Inc. is engaged in providing information technology (IT) hardware, software, and cloud and service solutions to business, government, healthcare and educational clients. The Company operates through three segments: North America, EMEA and APAC. North America comprises the United States and Canada; EMEA comprises Europe, the Middle East and Africa, and APAC comprises Asia Pacific. The Company consults, designs, implements and manages integrated IT solutions for its customers. Its offerings in North America and select countries in Europe, the Middle East and Africa include a suite of IT hardware, software and services solutions. Its offerings in the remainder of EMEA and APAC segments are software and select software-related services. Its cloud management platform serves as a marketplace for its clients to buy and manage their cloud subscriptions with options that manage their software-as-a-service and infrastructure-as-a-service management capabilities.

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