Luxoft Holding (LXFT) vs. Its Peers Critical Analysis

Luxoft Holding (NYSE: LXFT) is one of 107 public companies in the “Enterprise Software” industry, but how does it weigh in compared to its competitors? We will compare Luxoft Holding to similar companies based on the strength of its analyst recommendations, risk, profitability, institutional ownership, dividends, valuation and earnings.

Valuation and Earnings

This table compares Luxoft Holding and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Luxoft Holding $785.56 million $62.63 million 28.55
Luxoft Holding Competitors $1.82 billion $300.70 million 35.69

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

Risk & Volatility

Luxoft Holding has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Luxoft Holding’s competitors have a beta of 1.10, indicating that their average share price is 10% more volatile than the S&P 500.

Profitability

This table compares Luxoft Holding and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luxoft Holding 6.72% 18.90% 13.83%
Luxoft Holding Competitors -25.40% -205.62% -7.95%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Luxoft Holding and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luxoft Holding 1 4 4 0 2.33
Luxoft Holding Competitors 363 2177 4097 116 2.59

Luxoft Holding currently has a consensus target price of $65.00, indicating a potential upside of 40.54%. As a group, “Enterprise Software” companies have a potential downside of 1.26%. Given Luxoft Holding’s higher probable upside, analysts plainly believe Luxoft Holding is more favorable than its competitors.

Insider and Institutional Ownership

78.7% of Luxoft Holding shares are held by institutional investors. Comparatively, 60.3% of shares of all “Enterprise Software” companies are held by institutional investors. 22.4% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Luxoft Holding competitors beat Luxoft Holding on 7 of the 13 factors compared.

About Luxoft Holding

Luxoft Holding, Inc., is a provider of software development services and information technology (IT) solutions to a global client base consisting primarily of large multinational corporations. The Company’s software development services consist of custom software development and support, product engineering and testing, and technology consulting. The Company’s solutions are based on its proprietary products and platforms that directly impact its clients’ business outcomes and efficiently deliver continuous innovation. The Company develops its solutions and delivers its services from 34 cities with delivery centers worldwide. Its products and platforms include Horizon, SuperCloud, Twister, iStockTrack, TEORA, Populus, AllView, CVNAR and Retail Engagement Suite (RES) in Internet of Things (IoT) space.

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