Critical Survey: Genpact Limited (G) vs. Vantiv (VNTV)
Genpact Limited (NYSE: G) and Vantiv (NYSE:VNTV) are both mid-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
This table compares Genpact Limited and Vantiv’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Genpact Limited has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Vantiv has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
Earnings and Valuation
This table compares Genpact Limited and Vantiv’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Genpact Limited||$2.62 billion||2.15||$438.33 million||$1.33||22.00|
|Vantiv||$3.80 billion||3.00||$880.01 million||$1.29||54.81|
Vantiv has higher revenue and earnings than Genpact Limited. Genpact Limited is trading at a lower price-to-earnings ratio than Vantiv, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
92.2% of Genpact Limited shares are held by institutional investors. Comparatively, 80.2% of Vantiv shares are held by institutional investors. 1.6% of Genpact Limited shares are held by insiders. Comparatively, 1.3% of Vantiv shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Genpact Limited pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Vantiv does not pay a dividend. Genpact Limited pays out 18.0% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Genpact Limited and Vantiv, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Genpact Limited presently has a consensus target price of $31.67, indicating a potential upside of 8.23%. Vantiv has a consensus target price of $75.43, indicating a potential upside of 6.68%. Given Genpact Limited’s stronger consensus rating and higher probable upside, equities analysts plainly believe Genpact Limited is more favorable than Vantiv.
About Genpact Limited
Genpact Limited is engaged in providing digitally powered business process management and services. The Company is also engaged in designing, transforming and running a combination of processes, as well as providing solutions that combine elements of its service offerings. The Company’s segments include Business process outsourcing and Information technology services. The Company offers various vertical activities, which include banking and financial services, capital markets, consumer product goods services, healthcare, infrastructure and manufacturing services, insurance and life sciences. In addition to these vertical activities, it also offers analytics and research, collections and customer services, consulting and transformation services, core industry operations services, enterprise application services, finance and accounting (F&A) services, information technology (IT) infrastructure management services, and supply chain and procurement services.
Vantiv, Inc. is a holding company. The Company conducts its operations through its subsidiary, Vantiv Holding, LLC. The Company is a payment processor. The Company’s segments include Merchant Services and Financial Institution Services. The Company offers a range of payment processing services that enable its clients to meet their payment processing needs through a single provider. The Company enables merchants to accept and process credit, debit and prepaid payments, and provide them supporting value-added services, such as security solutions and fraud management, information solutions and interchange management. It also provides payment services to financial institutions, such as card issuer processing, payment network processing, fraud protection, card production, prepaid program management, automated teller machine (ATM) driving and network gateway and switching services that utilize the Company’s Jeanie personal identification number (PIN) debit payment network.
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