Genpact vs Wipro Which Should You Buy?

Genpact and Wipro are two well-known companies in the IT and Business Process Outsourcing (BPO) industry. Both companies have a strong presence in the global market and offer a wide range of services to their clients. When it comes to their stocks, Genpact and Wipro have shown resilience and growth over the years, attracting investors from around the world. In this comparison, we will analyze the performance of both companies' stocks and provide insights on which may be a more favorable investment option.

Genpact or Wipro?

When comparing Genpact 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 Genpact 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. Genpact has a dividend yield of 1.6%, while Wipro has a dividend yield of 0.17%. 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, 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 Genpact P/E ratio at 12.61 and Wipro's P/E ratio at 26.30. 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 Wipro's P/B ratio is 3.77.

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 Wipro's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Genpact's ROE at 28.58% and Wipro's ROE at 15.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.77 for Genpact and $6.86 for Wipro. Over the past year, Genpact's prices ranged from $30.23 to $47.98, with a yearly change of 58.72%. Wipro's prices fluctuated between $4.50 and $7.04, with a yearly change of 56.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.