Tech Mahindra vs Genpact Which Outperforms?

Tech Mahindra and Genpact are two prominent players in the Indian IT services and business process outsourcing industry. Both companies have gained global recognition for their services and have seen significant growth in recent years. Tech Mahindra, a leading provider of digital transformation, consulting, and business reengineering services, has shown consistent performance in the stock market. On the other hand, Genpact, a key player in the business process management sector, has also recorded strong financial results. Investors are closely monitoring both stocks for potential growth opportunities in the competitive IT industry.

Tech Mahindra or Genpact?

When comparing Tech Mahindra and Genpact, 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 Tech Mahindra and Genpact.

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. Tech Mahindra has a dividend yield of 2.41%, while Genpact has a dividend yield of 1.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tech Mahindra reports a 5-year dividend growth of 25.74% year and a payout ratio of 0.00%. On the other hand, Genpact reports a 5-year dividend growth of 12.89% year and a payout ratio of 16.07%.

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 Tech Mahindra P/E ratio at 48.22 and Genpact's P/E ratio at 12.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tech Mahindra P/B ratio is 5.97 while Genpact's P/B ratio is 3.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tech Mahindra has seen a 5-year revenue growth of 0.50%, while Genpact's is 0.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tech Mahindra's ROE at 12.22% and Genpact's ROE at 28.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1775.60 for Tech Mahindra and $44.97 for Genpact. Over the past year, Tech Mahindra's prices ranged from ₹1162.95 to ₹1797.00, with a yearly change of 54.52%. Genpact's prices fluctuated between $30.23 and $47.98, with a yearly change of 58.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.