Capita plc (CPI.L) (LON:CPI) and Keywords Studios plc (KWS.L) (LON:KWS) are both small-cap services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Analyst Ratings
This is a summary of recent ratings for Capita plc (CPI.L) and Keywords Studios plc (KWS.L), as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Capita plc (CPI.L) | 0 | 7 | 4 | 0 | 2.36 |
Keywords Studios plc (KWS.L) | 1 | 0 | 4 | 0 | 2.60 |
Capita plc (CPI.L) currently has a consensus target price of GBX 70.70, suggesting a potential upside of 56.45%. Keywords Studios plc (KWS.L) has a consensus target price of GBX 1,788.20, suggesting a potential downside of 30.69%. Given Capita plc (CPI.L)'s higher possible upside, analysts plainly believe Capita plc (CPI.L) is more favorable than Keywords Studios plc (KWS.L).
Earnings and Valuation
This table compares Capita plc (CPI.L) and Keywords Studios plc (KWS.L)'s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Capita plc (CPI.L) | £3.51 billion | 0.21 | N/A | GBX (4.50) | -10.04 |
Keywords Studios plc (KWS.L) | N/A | N/A | N/A | GBX 20.80 | 124.04 |
Capita plc (CPI.L) is trading at a lower price-to-earnings ratio than Keywords Studios plc (KWS.L), indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Capita plc (CPI.L) and Keywords Studios plc (KWS.L)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Capita plc (CPI.L) | N/A | N/A | N/A |
Keywords Studios plc (KWS.L) | N/A | N/A | N/A |
Summary
Keywords Studios plc (KWS.L) beats Capita plc (CPI.L) on 3 of the 5 factors compared between the two stocks.