Infosys vs Mphasis Which Is More Favorable?

Infosys and Mphasis are two leading information technology companies in India that have garnered significant attention from investors. Both companies are known for their strong presence in the global market and their consistent growth in revenue and profitability. While Infosys is a larger company with a well-established reputation, Mphasis has shown promising growth potential in recent years. Investors have been closely monitoring the performance of both stocks to identify lucrative investment opportunities in the competitive IT sector.

Infosys or Mphasis?

When comparing Infosys and Mphasis, 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 Mphasis.

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 2.66%, while Mphasis has a dividend yield of 1.92%. 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 70.73%. On the other hand, Mphasis reports a 5-year dividend growth of 20.11% year and a payout ratio of 59.13%.

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 28.25 and Mphasis's P/E ratio at 33.94. 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 8.46 while Mphasis's P/B ratio is 6.24.

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 Mphasis's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Infosys's ROE at 31.58% and Mphasis's ROE at 18.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.77 for Infosys and ₹2819.60 for Mphasis. Over the past year, Infosys's prices ranged from $16.04 to $23.48, with a yearly change of 46.38%. Mphasis's prices fluctuated between ₹2144.10 and ₹3187.80, with a yearly change of 48.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.