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.
Cognizant Technology Solutions (NASDAQ:CTSH) and Infosys (NYSE:INFY) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, media sentiment, valuation, dividends, profitability, risk, analyst recommendations and community ranking.
Cognizant Technology Solutions pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. Infosys pays an annual dividend of $0.29 per share and has a dividend yield of 1.3%. Cognizant Technology Solutions pays out 28.8% of its earnings in the form of a dividend. Infosys pays out 38.2% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Infosys has a net margin of 17.18% compared to Infosys' net margin of 10.84%. Cognizant Technology Solutions' return on equity of 32.01% beat Infosys' return on equity.
Cognizant Technology Solutions presently has a consensus price target of $75.75, indicating a potential upside of 1.58%. Infosys has a consensus price target of $19.27, indicating a potential downside of 15.42%. Given Infosys' higher possible upside, analysts plainly believe Cognizant Technology Solutions is more favorable than Infosys.
Infosys has lower revenue, but higher earnings 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.
In the previous week, Infosys had 7 more articles in the media than Cognizant Technology Solutions. MarketBeat recorded 23 mentions for Infosys and 16 mentions for Cognizant Technology Solutions. Infosys' average media sentiment score of 0.93 beat Cognizant Technology Solutions' score of 0.72 indicating that Cognizant Technology Solutions is being referred to more favorably in the media.
92.4% of Cognizant Technology Solutions shares are owned by institutional investors. Comparatively, 10.9% of Infosys shares are owned by institutional investors. 0.3% of Cognizant Technology Solutions shares are owned by company insiders. Comparatively, 22.4% of Infosys shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Cognizant Technology Solutions received 728 more outperform votes than Infosys when rated by MarketBeat users. Likewise, 74.82% of users gave Cognizant Technology Solutions an outperform vote while only 55.87% of users gave Infosys an outperform vote.
Cognizant Technology Solutions has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Infosys has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Summary
Cognizant Technology Solutions and Infosys tied by winning 10 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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