Persistent Systems vs Infosys

Persistent Systems and Infosys are two prominent Indian IT services companies that have been competing in the market for years. Both companies have a strong track record of growth and have garnered attention from investors. However, there are notable differences between the two companies in terms of their business strategies, financial performance, and market positioning. In this comparison, we will analyze the performance of Persistent Systems and Infosys stocks to determine which company may be the better investment option for investors.

Persistent Systems or Infosys?

When comparing Persistent Systems and Infosys, 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 Persistent Systems and Infosys.

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. Persistent Systems has a dividend yield of 0.75%, while Infosys has a dividend yield of 2.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Persistent Systems reports a 5-year dividend growth of 30.60% year and a payout ratio of 34.87%. On the other hand, Infosys reports a 5-year dividend growth of -5.23% year and a payout ratio of 55.45%.

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 Persistent Systems P/E ratio at 73.35 and Infosys's P/E ratio at 29.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Persistent Systems P/B ratio is 15.78 while Infosys's P/B ratio is 9.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Persistent Systems has seen a 5-year revenue growth of 1.92%, while Infosys's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Persistent Systems's ROE at 23.84% and Infosys's ROE at 32.17%.

Retail Investors:

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