Infosys vs Persistent Systems

Infosys and Persistent Systems are two prominent Indian information technology companies listed on the stock exchange. Infosys, one of the largest IT services firms in India, has a global presence and a strong track record of delivering innovative solutions to clients across multiple industries. On the other hand, Persistent Systems is known for its focus on software product development and digital transformation services. Investors looking to capitalize on the booming IT sector in India may consider both companies for their investment portfolios.

Infosys or Persistent Systems?

When comparing Infosys and Persistent Systems, 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 Persistent Systems.

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 Persistent Systems has a dividend yield of 0.75%. 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, Persistent Systems reports a 5-year dividend growth of 30.60% year and a payout ratio of 34.87%.

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 Persistent Systems's P/E ratio at 73.35. 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 Persistent Systems's P/B ratio is 15.78.

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 Persistent Systems's is 1.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Infosys's ROE at 32.17% and Persistent Systems's ROE at 23.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.97 for Infosys and ₹5591.00 for Persistent Systems. Over the past year, Infosys's prices ranged from $16.04 to $23.48, with a yearly change of 46.38%. Persistent Systems's prices fluctuated between ₹2812.88 and ₹5689.95, with a yearly change of 102.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.