INFY vs. CTSH, WIT, ZS, VRSN, CRWD, APH, PYPL, WDAY, CDNS, and ANET
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), CrowdStrike (CRWD), Amphenol (APH), PayPal (PYPL), Workday (WDAY), Cadence Design Systems (CDNS), and Arista Networks (ANET). These companies are all part of the "computer and technology" sector.
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 contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, media sentiment, earnings, community ranking, profitability, valuation and dividends.
In the previous week, Cognizant Technology Solutions had 4 more articles in the media than Infosys. MarketBeat recorded 14 mentions for Cognizant Technology Solutions and 10 mentions for Infosys. Infosys' average media sentiment score of 0.69 beat Cognizant Technology Solutions' score of 0.67 indicating that Infosys is being referred to more favorably in the media.
Infosys has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.
10.9% of Infosys shares are held by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are held by institutional investors. 22.4% of Infosys shares are held by company insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Infosys presently has a consensus target price of $19.27, suggesting a potential upside of 13.56%. Cognizant Technology Solutions has a consensus target price of $76.13, suggesting a potential upside of 14.42%. Given Cognizant Technology Solutions' higher possible upside, analysts clearly believe Cognizant Technology Solutions is more favorable than Infosys.
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 28.6% 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 729 more outperform votes than Infosys when rated by MarketBeat users. Likewise, 75.22% of users gave Cognizant Technology Solutions an outperform vote while only 55.84% of users gave Infosys an outperform vote.
Infosys has a net margin of 17.06% compared to Cognizant Technology Solutions' net margin of 10.98%. Infosys' return on equity of 32.33% beat Cognizant Technology Solutions' return on equity.
Summary
Infosys beats Cognizant Technology Solutions on 11 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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