Tata Technologies vs Tata Consultancy Services Which Is Stronger?

Tata Technologies and Tata Consultancy Services are two prominent companies under the Tata Group conglomerate. While Tata Consultancy Services (TCS) is a leading global IT services and consulting company, Tata Technologies is focused on engineering services and product development solutions. Both companies have shown strong performance in the market, but their stocks have seen varying levels of growth and stability. Investors may choose between these two stocks based on their individual investment goals and risk tolerance.

Tata Technologies or Tata Consultancy Services?

When comparing Tata Technologies and Tata Consultancy Services, 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 Technologies and Tata Consultancy Services.

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 Technologies has a dividend yield of 1.49%, while Tata Consultancy Services has a dividend yield of 1.64%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tata Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Tata Consultancy Services reports a 5-year dividend growth of 18.57% year and a payout ratio of 54.98%.

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 Technologies P/E ratio at 42.37 and Tata Consultancy Services's P/E ratio at 26.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tata Technologies P/B ratio is 8.50 while Tata Consultancy Services's P/B ratio is 12.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tata Technologies has seen a 5-year revenue growth of -0.55%, while Tata Consultancy Services's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tata Technologies's ROE at 20.63% and Tata Consultancy Services's ROE at 52.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹647.00 for Tata Technologies and ₹3520.85 for Tata Consultancy Services. Over the past year, Tata Technologies's prices ranged from ₹634.55 to ₹1147.75, with a yearly change of 80.88%. Tata Consultancy Services's prices fluctuated between ₹3457.00 and ₹4592.25, with a yearly change of 32.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.