Infosys vs NTT DATA Which Offers More Value?

Infosys and NTT DATA are two prominent players in the IT services industry, both listed on major stock exchanges. Infosys, based in India, is known for its expertise in software development, consulting, and outsourcing services. NTT DATA, a Japanese multinational company, offers a wide range of IT services globally. Investors keen on the IT sector may find these stocks attractive due to their strong market presence and potential for growth. However, factors like market volatility and industry competition should also be considered before making investment decisions.

Infosys or NTT DATA?

When comparing Infosys and NTT DATA, 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 NTT DATA.

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 2.5%, while NTT DATA 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 70.72%. On the other hand, NTT DATA reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.33%.

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 29.61 and NTT DATA's P/E ratio at 32.20. 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 8.87 while NTT DATA's P/B ratio is 2.27.

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 NTT DATA's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Infosys's ROE at 31.58% and NTT DATA's ROE at 7.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.29 for Infosys and $19.04 for NTT DATA. Over the past year, Infosys's prices ranged from $16.04 to $23.63, with a yearly change of 47.32%. NTT DATA's prices fluctuated between $12.71 and $20.73, with a yearly change of 63.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.