INFY vs. CTSH, WIT, ZS, PYPL, APH, CRWD, NXPI, WDAY, CDNS, and NTES
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), PayPal (PYPL), Amphenol (APH), CrowdStrike (CRWD), NXP Semiconductors (NXPI), Workday (WDAY), Cadence Design Systems (CDNS), and NetEase (NTES). 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 business? We will contrast the two companies based on the strength of their risk, media sentiment, community ranking, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
In the previous week, Cognizant Technology Solutions had 7 more articles in the media than Infosys. MarketBeat recorded 19 mentions for Cognizant Technology Solutions and 12 mentions for Infosys. Cognizant Technology Solutions' average media sentiment score of 0.83 beat Infosys' score of 0.45 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 1.8%. 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.
Infosys has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
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 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.
Infosys currently 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 12.97%. Given Infosys' stronger consensus rating and higher probable upside, research analysts clearly believe Infosys is more favorable than Cognizant Technology Solutions.
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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
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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