INFY vs. CTSH, WIT, ZS, VRSN, AZPN, EPAM, DOX, HCP, DOCS, and PRFT
Should you be buying Infosys stock or one of its competitors? The main competitors of Infosys include Cognizant Technology Solutions (CTSH), Wipro (WIT), Zscaler (ZS), VeriSign (VRSN), Aspen Technology (AZPN), EPAM Systems (EPAM), Amdocs (DOX), HashiCorp (HCP), Doximity (DOCS), and Perficient (PRFT). These companies are all part of the "custom computer programming services" industry.
Infosys (NYSE:INFY) and Cognizant Technology Solutions (NASDAQ:CTSH) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, media sentiment, risk, community ranking, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Infosys has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
In the previous week, Infosys had 5 more articles in the media than Cognizant Technology Solutions. MarketBeat recorded 15 mentions for Infosys and 10 mentions for Cognizant Technology Solutions. Cognizant Technology Solutions' average media sentiment score of 1.50 beat Infosys' score of 0.24 indicating that Cognizant Technology Solutions is being referred to more favorably in the news media.
Infosys has a net margin of 17.06% compared to Cognizant Technology Solutions' net margin of 10.84%. Infosys' return on equity of 32.33% beat Cognizant Technology Solutions' return on equity.
10.9% of Infosys shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 22.4% of Infosys shares are owned by insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Infosys presently has a consensus target price of $19.27, indicating a potential upside of 15.05%. Cognizant Technology Solutions has a consensus target price of $75.67, indicating a potential upside of 14.39%. Given Infosys' stronger consensus rating and higher possible upside, research analysts plainly believe Infosys is more favorable than Cognizant Technology Solutions.
Infosys has higher earnings, but lower revenue than Cognizant Technology Solutions. Cognizant Technology Solutions is trading at a lower price-to-earnings ratio than Infosys, indicating that it is currently the more affordable of the two stocks.
Infosys pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Cognizant Technology Solutions pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Infosys pays out 47.4% of its earnings in the form of a dividend. Cognizant Technology Solutions pays out 28.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Cognizant Technology Solutions received 730 more outperform votes than Infosys when rated by MarketBeat users. Likewise, 75.00% of users gave Cognizant Technology Solutions an outperform vote while only 55.84% of users gave Infosys an outperform vote.
Summary
Infosys beats Cognizant Technology Solutions on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding INFY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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