Infosys vs Genpact

Infosys and Genpact are two prominent players in the IT and business process outsourcing industries, with both companies offering a range of services to clients worldwide. When it comes to their stocks, Infosys has historically been a more stable and established investment option, known for its consistent growth and strong financial performance. On the other hand, Genpact is considered a more high-growth stock, with potential for significant returns but also higher volatility. Investors should carefully consider their risk tolerance and investment objectives when choosing between Infosys and Genpact stocks.

Infosys or Genpact?

When comparing Infosys and Genpact, 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 Genpact.

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 Genpact has a dividend yield of 1.9%. 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, Genpact reports a 5-year dividend growth of 12.89% year and a payout ratio of 16.14%.

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 Genpact's P/E ratio at 10.91. 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 Genpact's P/B ratio is 3.02.

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 Genpact's is 0.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Infosys's ROE at 32.17% and Genpact's ROE at 29.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.97 for Infosys and $39.04 for Genpact. Over the past year, Infosys's prices ranged from $16.04 to $23.48, with a yearly change of 46.38%. Genpact's prices fluctuated between $29.41 and $39.95, with a yearly change of 35.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.