HCL Technologies vs HCL Infosystems Which Outperforms?

HCL Technologies and HCL Infosystems are two separate entities under the HCL Group umbrella, but they operate in different sectors of the IT industry. HCL Technologies is a global IT services company that specializes in software development, outsourcing, and consulting services, while HCL Infosystems focuses on hardware products, distribution, and infrastructure services in India. Both companies have their stocks listed on the stock market, with HCL Technologies being a more widely known and profitable investment option compared to HCL Infosystems. This comparison highlights the diverse investment opportunities within the HCL brand.

HCL Technologies or HCL Infosystems?

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

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 Technologies has a dividend yield of 2.83%, while HCL Infosystems has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HCL Technologies reports a 5-year dividend growth of 44.27% year and a payout ratio of 67.59%. On the other hand, HCL Infosystems 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 HCL Technologies P/E ratio at 30.77 and HCL Infosystems's P/E ratio at -20.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HCL Technologies P/B ratio is 7.52 while HCL Infosystems's P/B ratio is -1.98.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1901.00 for HCL Technologies and ₹16.92 for HCL Infosystems. Over the past year, HCL Technologies's prices ranged from ₹1235.00 to ₹1939.35, with a yearly change of 57.03%. HCL Infosystems's prices fluctuated between ₹13.95 and ₹26.40, with a yearly change of 89.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.