Genpact vs Concentrix Which Is Superior?

Genpact and Concentrix are two prominent companies in the business process outsourcing industry, with both offering a range of services to clients globally. Investors may be interested in comparing the stocks of these companies to determine which offers a better investment opportunity. Genpact, founded in 1997, has a strong track record of growth and profitability. Concentrix, on the other hand, is a relatively newer player in the market but has shown rapid expansion and innovation in recent years. This comparison can help investors make informed decisions about where to allocate their capital in the BPO sector.

Genpact or Concentrix?

When comparing Genpact and Concentrix, 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 Genpact and Concentrix.

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. Genpact has a dividend yield of 1.17%, while Concentrix has a dividend yield of 2.95%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Genpact reports a 5-year dividend growth of 12.40% year and a payout ratio of 20.74%. On the other hand, Concentrix reports a 5-year dividend growth of 0.00% year and a payout ratio of 33.36%.

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 Genpact P/E ratio at 17.81 and Concentrix's P/E ratio at 11.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Genpact P/B ratio is 3.83 while Concentrix's P/B ratio is 0.68.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Genpact has seen a 5-year revenue growth of 0.44%, while Concentrix's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Genpact's ROE at 21.81% and Concentrix's ROE at 6.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $50.51 for Genpact and $41.42 for Concentrix. Over the past year, Genpact's prices ranged from $30.23 to $56.76, with a yearly change of 87.76%. Concentrix's prices fluctuated between $36.28 and $77.00, with a yearly change of 112.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.