NTT DATA vs Wipro Which Is Superior?

NTT DATA and Wipro are multinational technology companies that are renowned for their expertise in providing IT services and solutions to clients globally. Both companies have a strong presence in the technology industry and have shown consistent growth in their respective stocks over the years. Investors often compare the performance of NTT DATA and Wipro stocks to make informed decisions about their investment portfolios. This article will analyze the financial performance, growth prospects, and market trends of NTT DATA and Wipro stocks to provide insights for potential investors.

NTT DATA or Wipro?

When comparing NTT DATA and Wipro, 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 Wipro.

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 Wipro has a dividend yield of 0.33%. 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, Wipro reports a 5-year dividend growth of -5.59% year and a payout ratio of 4.44%.

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 32.20 and Wipro's P/E ratio at 13.86. 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 2.27 while Wipro's P/B ratio is 1.99.

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 Wipro's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NTT DATA's ROE at 7.60% and Wipro's ROE at 15.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.04 for NTT DATA and $3.64 for Wipro. Over the past year, NTT DATA's prices ranged from $12.71 to $20.73, with a yearly change of 63.10%. Wipro's prices fluctuated between $3.58 and $7.30, with a yearly change of 103.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.