PFSweb (PFSW) & Infosys Limited (INFY) Financial Review
PFSweb (NASDAQ: PFSW) and Infosys Limited (NYSE:INFY) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Risk & Volatility
PFSweb has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Infosys Limited has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Infosys Limited pays an annual dividend of $0.35 per share and has a dividend yield of 2.4%. PFSweb does not pay a dividend. Infosys Limited pays out 36.5% of its earnings in the form of a dividend. Infosys Limited has raised its dividend for 4 consecutive years.
Earnings and Valuation
This table compares PFSweb and Infosys Limited’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PFSweb||$282.62 million||0.54||$16.22 million||($0.65)||-12.40|
|Infosys Limited||$10.36 billion||3.29||$2.81 billion||$0.96||15.46|
Infosys Limited has higher revenue and earnings than PFSweb. PFSweb is trading at a lower price-to-earnings ratio than Infosys Limited, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for PFSweb and Infosys Limited, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PFSweb currently has a consensus target price of $11.63, suggesting a potential upside of 44.23%. Infosys Limited has a consensus target price of $15.06, suggesting a potential upside of 1.50%. Given PFSweb’s stronger consensus rating and higher probable upside, research analysts plainly believe PFSweb is more favorable than Infosys Limited.
Institutional and Insider Ownership
57.5% of PFSweb shares are held by institutional investors. Comparatively, 19.9% of Infosys Limited shares are held by institutional investors. 5.2% of PFSweb shares are held by company insiders. Comparatively, 22.4% of Infosys Limited shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares PFSweb and Infosys Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Infosys Limited beats PFSweb on 10 of the 16 factors compared between the two stocks.
PFSWEB, Inc. is a global provider of omni-channel commerce solutions, including a range of technology, infrastructure and professional services. The Company’s service offerings include Website design, creation and integration, digital agency and marketing, e-commerce technologies, order management, customer care, logistics and fulfillment, financial management and professional consulting. It operates through two segments: PFSweb, and Business and Retail Connect. PFSweb is a global provider of various infrastructure, technology and digital agency solutions and operates as a service fee business. In the Business and Retail Connect segment, subsidiaries of the Company purchase inventory from clients and resell the inventory to client customers. Its solutions support direct-to-consumer (DTC), business-to-business (B2B) and retail sales channels. It markets its solutions as PFSweb’s End2End eCommerce solution.
About Infosys Limited
Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services. The Company, along with its subsidiaries, provides business information technology services comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation. Its segments are Financial Services and Insurance (FSI), Manufacturing and Hi-tech (MFG & Hi-TECH), Energy & utilities, Communication and Services (ECS), Retail, Consumer packaged goods and Logistics (RCL), and Life Sciences and Healthcare (LSH).
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