INFY vs. CTSH, WIT, VRSN, ZS, AMX, ABNB, SNPS, PYPL, RELX, and PANW
Should you be buying Infosys stock or one of its competitors? The main competitors of Infosys include Cognizant Technology Solutions (CTSH), Wipro (WIT), VeriSign (VRSN), Zscaler (ZS), América Móvil (AMX), Airbnb (ABNB), Synopsys (SNPS), PayPal (PYPL), Relx (RELX), and Palo Alto Networks (PANW). These companies are all part of the "computer and technology" sector.
Infosys vs.
Cognizant Technology Solutions (NASDAQ:CTSH) and Infosys (NYSE:INFY) 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 institutional ownership, earnings, community ranking, dividends, profitability, risk, valuation, media sentiment and analyst recommendations.
Cognizant Technology Solutions pays an annual dividend of $1.16 per share and has a dividend yield of 1.8%. Infosys pays an annual dividend of $0.34 per share and has a dividend yield of 2.1%. Cognizant Technology Solutions pays out 25.8% of its earnings in the form of a dividend. Infosys pays out 47.9% 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 has raised its dividend for 4 consecutive years.
Cognizant Technology Solutions received 731 more outperform votes than Infosys when rated by MarketBeat users. Likewise, 76.04% of users gave Cognizant Technology Solutions an outperform vote while only 56.15% of users gave Infosys an outperform vote.
In the previous week, Infosys had 2 more articles in the media than Cognizant Technology Solutions. MarketBeat recorded 13 mentions for Infosys and 11 mentions for Cognizant Technology Solutions. Cognizant Technology Solutions' average media sentiment score of 0.60 beat Infosys' score of 0.31 indicating that Cognizant Technology Solutions is being referred to more favorably in the media.
Infosys has a net margin of 16.37% compared to Cognizant Technology Solutions' net margin of 11.88%. Infosys' return on equity of 31.78% beat Cognizant Technology Solutions' return on equity.
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.
90.1% of Cognizant Technology Solutions shares are owned by institutional investors. Comparatively, 12.7% of Infosys shares are owned by institutional investors. 0.3% of Cognizant Technology Solutions shares are owned by insiders. Comparatively, 22.4% of Infosys shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Cognizant Technology Solutions presently has a consensus price target of $68.21, suggesting a potential upside of 8.48%. Infosys has a consensus price target of $18.57, suggesting a potential upside of 17.02%. Given Infosys' stronger consensus rating and higher probable upside, analysts clearly believe Infosys is more favorable than Cognizant Technology Solutions.
Cognizant Technology Solutions has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Infosys has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Summary
Infosys beats Cognizant Technology Solutions on 11 of the 20 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
Skip ChartMedia Sentiment Over Time
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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