Tata Technologies vs Tata Elxsi Which Is a Smarter Choice?

Tata Technologies and Tata Elxsi are two prominent companies within the Tata Group conglomerate that operate in the engineering and technology sectors respectively. While both companies are part of the same parent organization, they offer unique services and products that cater to different aspects of the industry. Tata Technologies focuses on providing engineering services, product development, and manufacturing solutions, while Tata Elxsi specializes in providing software and design services for industries such as automotive, media, and healthcare. Evaluating the performance of their stocks involves analyzing their respective financials, market positioning, and growth potential within their respective sectors.

Tata Technologies or Tata Elxsi?

When comparing Tata Technologies and Tata Elxsi, 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 Elxsi.

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 1.07%, while Tata Elxsi has a dividend yield of 0.95%. 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 Elxsi reports a 5-year dividend growth of 40.67% 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 Tata Technologies P/E ratio at 58.80 and Tata Elxsi's P/E ratio at 56.15. 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 11.83 while Tata Elxsi's P/B ratio is 18.44.

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 Elxsi's is 1.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tata Technologies's ROE at 20.68% and Tata Elxsi's ROE at 34.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹935.00 for Tata Technologies and ₹7211.95 for Tata Elxsi. Over the past year, Tata Technologies's prices ranged from ₹931.00 to ₹1259.80, with a yearly change of 35.32%. Tata Elxsi's prices fluctuated between ₹6286.00 and ₹9200.00, with a yearly change of 46.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.