NTT DATA vs Tech Mahindra Which Is Superior?

NTT DATA and Tech Mahindra are two prominent players in the information technology and services industry. NTT DATA, a Japanese multinational company, offers a wide range of IT services while Tech Mahindra, an Indian multinational company, specializes in digital transformation, consulting, and business process outsourcing. Both companies have shown steady growth and profitability in recent years, attracting investors looking to capitalize on the booming IT sector. This comparison aims to analyze the performance of NTT DATA and Tech Mahindra stocks to determine their investment potential.

NTT DATA or Tech Mahindra?

When comparing NTT DATA and Tech Mahindra, 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 NTT DATA and Tech Mahindra.

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. NTT DATA has a dividend yield of -%, while Tech Mahindra has a dividend yield of 3.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NTT DATA reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.33%. On the other hand, Tech Mahindra reports a 5-year dividend growth of 25.74% 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 NTT DATA P/E ratio at 28.98 and Tech Mahindra's P/E ratio at 45.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NTT DATA P/B ratio is 2.05 while Tech Mahindra's P/B ratio is 5.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NTT DATA has seen a 5-year revenue growth of 0.71%, while Tech Mahindra's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NTT DATA's ROE at 7.60% and Tech Mahindra's ROE at 12.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.91 for NTT DATA and ₹1663.65 for Tech Mahindra. Over the past year, NTT DATA's prices ranged from $11.53 to $18.80, with a yearly change of 63.05%. Tech Mahindra's prices fluctuated between ₹1143.50 and ₹1761.85, with a yearly change of 54.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.