Tech Mahindra vs NTT DATA Which Is Stronger?

Tech Mahindra and NTT DATA are two prominent companies in the information technology and services sector, known for their innovative solutions and technological expertise. Both companies have a strong global presence and offer a wide range of services to their clients. When comparing their stocks, investors should consider factors such as financial performance, market share, and growth potential. Understanding the strengths and weaknesses of each company can help investors make informed decisions about where to place their investments in the ever-evolving tech industry.

Tech Mahindra or NTT DATA?

When comparing Tech Mahindra and NTT DATA, 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 NTT DATA.

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 3.4%, while NTT DATA has a dividend yield of -%. 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, NTT DATA reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.33%.

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 46.10 and NTT DATA's P/E ratio at 29.45. 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 5.71 while NTT DATA's P/B ratio is 2.08.

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 NTT DATA's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tech Mahindra's ROE at 12.22% and NTT DATA's ROE at 7.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1666.05 for Tech Mahindra and $17.38 for NTT DATA. Over the past year, Tech Mahindra's prices ranged from ₹1128.00 to ₹1761.85, with a yearly change of 56.19%. NTT DATA's prices fluctuated between $11.53 and $18.80, with a yearly change of 63.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.