Critical Survey: Alpha Technology Group (NASDAQ:ATGL) & Wipro (NYSE:WIT)

Alpha Technology Group (NASDAQ:ATGL) and Wipro (NYSE:WIT) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Alpha Technology Group and Wipro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Technology Group	0	0	0	0	N/A
Wipro	2	0	1	1	2.25

Wipro has a consensus price target of $5.60, indicating a potential downside of 10.69%. Given Wipro’s higher possible upside, analysts plainly believe Wipro is more favorable than Alpha Technology Group.

Insider and Institutional Ownership

2.4% of Wipro shares are held by institutional investors. 1.0% of Wipro shares 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.

Earnings & Valuation

This table compares Alpha Technology Group and Wipro’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Technology Group	$8.69 million	4.13	-$890,000.00	N/A	N/A
Wipro	$10.77 billion	3.04	$1.33 billion	$0.25	25.08

Wipro has higher revenue and earnings than Alpha Technology Group.

Profitability

This table compares Alpha Technology Group and Wipro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Technology Group	N/A	N/A	N/A
Wipro	12.57%	15.01%	9.77%

Summary

Wipro beats Alpha Technology Group on 10 of the 11 factors compared between the two stocks.

About Alpha Technology Group

Alpha Technology Group Limited, through its subsidiaries, provides cloud-based information technology services in Hong Kong. The company primarily offers cloud-based and customized customer relationship management and enterprise resource planning systems; web and mobile application development services; artificial intelligence powered optical character recognition services; and technological support and maintenance, and other services, such as maintaining and enhancing services for systems. It serves customers from various industries, including consulting, real estate, architectural design, carpark management, electronic payment services, logistics, investments, retail, textiles, wholesale and distribution, social services, etc. The company was incorporated in 2022 and is based in Kwun Tong, Hong Kong.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through three segments: IT Services, IT Products, and India State Run Enterprise Services (ISRE). 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 healthcare and medical devices, consumer goods and life sciences, retail, transportation and services, communications, media and information services, technology products and platforms, banking, financial services and insurance, manufacturing, hi-tech, energy, and utilities. 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 ISRE segment offers IT services to entities and departments owned or controlled by the Government of India and/or various Indian State Governments. It also provides cybersecurity consulting services. The company has a partnership with ServiceNow, Inc. to develop Wipro CyberTransform – Intelligent ServiceNow Risk and Security Solutions. The company was incorporated in 1945 and is based in Bengaluru, India.