Higher One (NYSE: ONE) and Genpact (NYSE:G) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Higher One and Genpact, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Higher One 0 0 0 0 N/A
Genpact 0 2 6 0 2.75

Genpact has a consensus price target of $33.14, suggesting a potential upside of 3.73%. Given Genpact’s higher possible upside, analysts plainly believe Genpact is more favorable than Higher One.

Risk and Volatility

Higher One has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Genpact has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Profitability

This table compares Higher One and Genpact’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Higher One -26.77% -16.36% -10.01%
Genpact 10.18% 23.86% 9.71%

Valuation & Earnings

This table compares Higher One and Genpact’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Higher One N/A N/A N/A ($0.62) -8.31
Genpact $2.57 billion 2.40 $269.68 million $1.38 23.15

Genpact has higher revenue and earnings than Higher One. Higher One is trading at a lower price-to-earnings ratio than Genpact, indicating that it is currently the more affordable of the two stocks.

Dividends

Genpact pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Higher One does not pay a dividend. Genpact pays out 17.4% of its earnings in the form of a dividend.

Institutional and Insider Ownership

91.2% of Genpact shares are held by institutional investors. 1.4% of Genpact shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Genpact beats Higher One on 10 of the 12 factors compared between the two stocks.

Higher One Company Profile

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

Genpact Company Profile

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.

Receive News & Ratings for Higher One Holdings Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Higher One Holdings Inc and related companies with MarketBeat.com's FREE daily email newsletter.