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 stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability, media sentiment, community ranking and earnings.
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 insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are held by 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.
In the previous week, Infosys had 6 more articles in the media than Cognizant Technology Solutions. MarketBeat recorded 15 mentions for Infosys and 9 mentions for Cognizant Technology Solutions. Cognizant Technology Solutions' average media sentiment score of 1.39 beat Infosys' score of 0.01 indicating that Cognizant Technology Solutions is being referred to more favorably in the news media.
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 1.9%. 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.
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 has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
Infosys presently has a consensus price target of $19.27, suggesting a potential upside of 14.23%. Cognizant Technology Solutions has a consensus price target of $75.67, suggesting a potential upside of 16.81%. Given Cognizant Technology Solutions' higher possible upside, analysts plainly believe Cognizant Technology Solutions is more favorable than Infosys.
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.
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 11 of the 20 factors compared between the two stocks.
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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