Tata Communications vs Wipro Which Is Stronger?

Tata Communications and Wipro are two leading technology companies in the Indian market, each with a unique value proposition for investors. Tata Communications is a global telecommunications company with a strong presence in data services and managed network solutions. On the other hand, Wipro is a prominent IT services company offering digital transformation and consulting services. Both companies have shown solid performance in the stock market, but their strategies and market positions differentiate them, making them compelling options for investors looking to capitalize on the expanding tech sector.

Tata Communications or Wipro?

When comparing Tata Communications 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 Tata Communications 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. Tata Communications has a dividend yield of 0.94%, while Wipro has a dividend yield of 0.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tata Communications reports a 5-year dividend growth of 36.08% year and a payout ratio of 0.00%. 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 Tata Communications P/E ratio at 54.65 and Wipro's P/E ratio at 27.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tata Communications P/B ratio is 28.46 while Wipro's P/B ratio is 3.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tata Communications has seen a 5-year revenue growth of 0.27%, while Wipro's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tata Communications's ROE at 54.39% and Wipro's ROE at 15.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1769.15 for Tata Communications and $7.20 for Wipro. Over the past year, Tata Communications's prices ranged from ₹1585.55 to ₹2175.00, with a yearly change of 37.18%. Wipro's prices fluctuated between $4.95 and $7.30, with a yearly change of 47.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.