Cyient vs Infosys

Cyient and Infosys are two leading companies in the Indian IT sector, each offering unique opportunities for investors. Cyient, specializing in engineering services and solutions, has shown strong growth and stability in recent years. On the other hand, Infosys is a more diversified IT services company, with a global presence and a reputation for innovation. Both stocks offer potential for long-term growth, but investors should consider their individual risk tolerance and investment goals before deciding which stock to invest in.

Cyient or Infosys?

When comparing Cyient 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 Cyient 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. Cyient has a dividend yield of 1.59%, while Infosys has a dividend yield of 2.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cyient reports a 5-year dividend growth of 14.87% year and a payout ratio of 0.00%. On the other hand, Infosys reports a 5-year dividend growth of -5.23% year and a payout ratio of 55.45%.

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 Cyient P/E ratio at 31.40 and Infosys's P/E ratio at 29.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cyient P/B ratio is 4.54 while Infosys's P/B ratio is 9.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cyient has seen a 5-year revenue growth of 0.58%, while Infosys's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cyient's ROE at 15.27% and Infosys's ROE at 32.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1848.00 for Cyient and $22.97 for Infosys. Over the past year, Cyient's prices ranged from ₹1542.10 to ₹2458.95, with a yearly change of 59.45%. 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.