Birlasoft vs Wipro Which Is More Profitable?

Birlasoft and Wipro are two major players in the IT industry, both listed on the stock exchanges in India. While Wipro is a well-established company with a strong presence in the global market, Birlasoft is a fast-growing organization that has been gaining momentum in recent years. Investors looking to park their money in the IT sector may find both stocks appealing, but it is essential to conduct a thorough analysis of their financial performance, competitive positioning, and growth prospects before making any investment decisions.

Birlasoft or Wipro?

When comparing Birlasoft and Wipro, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Birlasoft and Wipro.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Birlasoft has a dividend yield of 1.08%, while Wipro has a dividend yield of 0.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Birlasoft reports a 5-year dividend growth of 20.11% year and a payout ratio of 28.93%. On the other hand, Wipro reports a 5-year dividend growth of -5.59% year and a payout ratio of 4.44%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Birlasoft P/E ratio at 27.08 and Wipro's P/E ratio at 13.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Birlasoft P/B ratio is 5.16 while Wipro's P/B ratio is 1.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Birlasoft has seen a 5-year revenue growth of 0.60%, while Wipro's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Birlasoft's ROE at 20.31% and Wipro's ROE at 15.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹593.10 for Birlasoft and $3.64 for Wipro. Over the past year, Birlasoft's prices ranged from ₹536.30 to ₹861.85, with a yearly change of 60.70%. Wipro's prices fluctuated between $3.58 and $7.30, with a yearly change of 103.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.