CTS vs Wipro Which Is More Lucrative?

CTS and Wipro are two prominent IT companies that have been competing in the stock market for years. CTS, also known as Cognizant Technology Solutions, has consistently been a favorite among investors due to its strong financial performance and steady growth. Wipro, on the other hand, has also been a strong player in the market with its diverse range of services and global presence. Both companies have their strengths and weaknesses, making it a tough decision for investors to choose between the two.

CTS or Wipro?

When comparing CTS 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 CTS 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. CTS has a dividend yield of 0.28%, while Wipro has a dividend yield of 0.17%. 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, 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 CTS P/E ratio at 29.01 and Wipro's P/E ratio at 26.00. 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 3.27 while Wipro's P/B ratio is 3.73.

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 Wipro's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CTS's ROE at 11.39% and Wipro's ROE at 15.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $56.82 for CTS and $6.88 for Wipro. Over the past year, CTS's prices ranged from $38.49 to $59.68, with a yearly change of 55.05%. Wipro's prices fluctuated between $4.54 and $7.04, with a yearly change of 55.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.