Infosys vs DXC Technology

Infosys and DXC Technology are two major players in the information technology services industry. Both companies provide a wide range of services including consulting, outsourcing, and software development. Infosys, based in India, is known for its strong global presence and innovative technology solutions. On the other hand, DXC Technology, a US-based company, focuses on digital transformation and cloud services. Investors interested in the technology sector may find both Infosys and DXC Technology stocks worth considering for their potential growth and stability.

Infosys or DXC Technology?

When comparing Infosys and DXC Technology, 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 Infosys and DXC Technology.

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. Infosys has a dividend yield of 2.4%, while DXC Technology has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Infosys reports a 5-year dividend growth of -5.23% year and a payout ratio of 55.45%. On the other hand, DXC Technology 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 Infosys P/E ratio at 29.73 and DXC Technology's P/E ratio at 45.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Infosys P/B ratio is 9.57 while DXC Technology's P/B ratio is 1.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Infosys has seen a 5-year revenue growth of 0.65%, while DXC Technology's is -0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Infosys's ROE at 32.17% and DXC Technology's ROE at 2.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.97 for Infosys and $20.23 for DXC Technology. Over the past year, Infosys's prices ranged from $16.04 to $23.48, with a yearly change of 46.38%. DXC Technology's prices fluctuated between $14.79 and $25.14, with a yearly change of 69.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.