CTS vs Infosys Which Is More Profitable?

CTS and Infosys are two leading Indian IT companies that are traded on the stock market. Both companies have a strong presence in the global IT industry and have consistently shown impressive financial performance. However, there are significant differences between the two companies in terms of business strategies, market focus, and growth potential. Investors looking to invest in the IT sector may benefit from comparing the stocks of CTS and Infosys to make informed investment decisions.

CTS or Infosys?

When comparing CTS and Infosys, 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 CTS and Infosys.

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. CTS has a dividend yield of 0.28%, while Infosys has a dividend yield of 2.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CTS reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.23%. On the other hand, Infosys reports a 5-year dividend growth of -5.23% year and a payout ratio of 70.73%.

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 CTS P/E ratio at 29.31 and Infosys's P/E ratio at 28.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CTS P/B ratio is 3.30 while Infosys's P/B ratio is 8.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CTS has seen a 5-year revenue growth of 0.23%, while Infosys's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CTS's ROE at 11.39% and Infosys's ROE at 31.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.37 for CTS and $21.77 for Infosys. Over the past year, CTS's prices ranged from $38.04 to $59.68, with a yearly change of 56.89%. Infosys's prices fluctuated between $16.04 and $23.48, with a yearly change of 46.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.