Wipro vs Mphasis Which Is Superior?

Wipro Limited and Mphasis Limited are two leading information technology services companies that are listed on the stock exchange. Wipro has a long-standing reputation in the industry, offering a range of IT services to clients globally. On the other hand, Mphasis is known for its specialization in banking, financial services, and insurance sectors. Both companies have shown steady growth in recent years, but investors need to carefully analyze their financial performance, market position, and future prospects before making investment decisions.

Wipro or Mphasis?

When comparing Wipro and Mphasis, 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 Wipro and Mphasis.

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. Wipro has a dividend yield of 0.17%, while Mphasis has a dividend yield of 1.73%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wipro reports a 5-year dividend growth of -5.59% year and a payout ratio of 4.44%. On the other hand, Mphasis reports a 5-year dividend growth of 20.11% year and a payout ratio of 59.13%.

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 Wipro P/E ratio at 27.37 and Mphasis's P/E ratio at 37.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wipro P/B ratio is 3.92 while Mphasis's P/B ratio is 6.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wipro has seen a 5-year revenue growth of 0.74%, while Mphasis's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wipro's ROE at 15.47% and Mphasis's ROE at 18.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.20 for Wipro and ₹3105.00 for Mphasis. Over the past year, Wipro's prices ranged from $4.95 to $7.30, with a yearly change of 47.47%. Mphasis's prices fluctuated between ₹2187.00 and ₹3201.90, with a yearly change of 46.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.