Genpact vs Infosys Which Is Stronger?

Genpact and Infosys are two leading companies in the information technology and business consulting sectors, providing services to clients worldwide. Both companies have gained significant traction in the stock market, with investors closely monitoring their performance. Genpact is known for its expertise in analytics, digital transformation, and process management, while Infosys is recognized for its strong presence in software development, automation, and cloud services. Understanding the key factors influencing the stock prices of these companies is essential for investors seeking to make informed decisions in the market.

Genpact or Infosys?

When comparing Genpact 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 Genpact 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. Genpact has a dividend yield of 1.6%, while Infosys has a dividend yield of 2.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Genpact reports a 5-year dividend growth of 12.89% year and a payout ratio of 16.07%. 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 Genpact P/E ratio at 12.61 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. Genpact P/B ratio is 3.49 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, Genpact has seen a 5-year revenue growth of 0.56%, while Infosys's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Genpact's ROE at 28.58% and Infosys's ROE at 31.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.77 for Genpact and $21.77 for Infosys. Over the past year, Genpact's prices ranged from $30.23 to $47.98, with a yearly change of 58.72%. 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.