Financial Analysis: Kyndryl (NYSE:KD) & Pony AI (NASDAQ:PONY)

Pony AI (NASDAQ:PONY) and Kyndryl (NYSE:KD) are both mid-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Pony AI and Kyndryl, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pony AI	0	0	3	0	3.00
Kyndryl	0	0	4	0	3.00

Pony AI presently has a consensus target price of $19.20, indicating a potential upside of 17.43%. Kyndryl has a consensus target price of $39.75, indicating a potential upside of 5.40%. Given Pony AI’s higher probable upside, equities analysts clearly believe Pony AI is more favorable than Kyndryl.

Insider & Institutional Ownership

71.5% of Kyndryl shares are held by institutional investors. 1.0% of Kyndryl shares are held by 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.

Profitability

This table compares Pony AI and Kyndryl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pony AI	N/A	N/A	N/A
Kyndryl	0.91%	7.22%	0.81%

Earnings & Valuation

This table compares Pony AI and Kyndryl”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pony AI	$84.33 million	67.66	N/A	N/A	N/A
Kyndryl	$15.11 billion	0.58	-$340.00 million	$0.55	68.57

Pony AI has higher earnings, but lower revenue than Kyndryl.

Summary

Kyndryl beats Pony AI on 7 of the 9 factors compared between the two stocks.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.

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.