Genpact vs WNS Which Is a Smarter Choice?

Genpact and WNS are two prominent players in the business process management industry, providing a range of services including finance and accounting, customer service, and analytics to global clients. Both companies have seen significant growth in recent years, with strong financial performance and a solid track record of delivering value to their stakeholders. However, there are differences in their operating models, growth strategies, and market positioning, which may impact their stock performance. In this comparison, we will analyze the key factors driving Genpact vs WNS stocks.

Genpact or WNS?

When comparing Genpact and WNS, 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 WNS.

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 1.35%, while WNS has a dividend yield of -%. 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, WNS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 12.08 and WNS's P/E ratio at 17.49. 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 3.34 while WNS's P/B ratio is 2.92.

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 WNS's is 0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Genpact's ROE at 28.58% and WNS's ROE at 16.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $44.83 for Genpact and $48.45 for WNS. Over the past year, Genpact's prices ranged from $30.23 to $47.98, with a yearly change of 58.72%. WNS's prices fluctuated between $39.85 and $72.57, with a yearly change of 82.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.