HCL Infosystems vs HCL Technologies Which Is Stronger?

HCL Infosystems and HCL Technologies are two separate entities within the HCL Group, with distinct operations and financial performance. HCL Infosystems primarily deals with hardware distribution and IT solutions, while HCL Technologies is focused on software development and IT services. The stocks of these two companies have different trading patterns and financial indicators. Investors should consider the unique business models and growth prospects of each company before making investment decisions in either HCL Infosystems or HCL Technologies.

HCL Infosystems or HCL Technologies?

When comparing HCL Infosystems and HCL Technologies, 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 HCL Infosystems and HCL Technologies.

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. HCL Infosystems has a dividend yield of -%, while HCL Technologies has a dividend yield of 2.81%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HCL Infosystems reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, HCL Technologies reports a 5-year dividend growth of 44.27% year and a payout ratio of 67.59%.

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 HCL Infosystems P/E ratio at -21.66 and HCL Technologies's P/E ratio at 30.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HCL Infosystems P/B ratio is -2.07 while HCL Technologies's P/B ratio is 7.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HCL Infosystems has seen a 5-year revenue growth of -0.99%, while HCL Technologies's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HCL Infosystems's ROE at 9.98% and HCL Technologies's ROE at 32.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹17.51 for HCL Infosystems and ₹1915.30 for HCL Technologies. Over the past year, HCL Infosystems's prices ranged from ₹13.95 to ₹26.40, with a yearly change of 89.25%. HCL Technologies's prices fluctuated between ₹1235.00 and ₹1939.35, with a yearly change of 57.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.