Comparing Genpact (NYSE:G) and C3.ai (NYSE:AI)

C3.ai (NYSE:AI) and Genpact (NYSE:G) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Profitability

This table compares C3.ai and Genpact’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C3.ai	-108.06%	-46.51%	-37.91%
Genpact	11.01%	22.55%	10.94%

Volatility & Risk

C3.ai has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Genpact has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Insider & Institutional Ownership

39.0% of C3.ai shares are held by institutional investors. Comparatively, 96.0% of Genpact shares are held by institutional investors. 26.5% of C3.ai shares are held by company insiders. Comparatively, 3.1% of Genpact shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares C3.ai and Genpact”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C3.ai	$389.06 million	5.07	-$288.70 million	($2.83)	-4.95
Genpact	$4.77 billion	1.74	$513.67 million	$3.10	15.56

Genpact has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than Genpact, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for C3.ai and Genpact, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C3.ai	5	7	2	1	1.93
Genpact	0	7	3	0	2.30

C3.ai presently has a consensus target price of $21.92, suggesting a potential upside of 56.48%. Genpact has a consensus target price of $51.00, suggesting a potential upside of 5.73%. Given C3.ai’s higher probable upside, equities research analysts clearly believe C3.ai is more favorable than Genpact.

Summary

Genpact beats C3.ai on 10 of the 15 factors compared between the two stocks.

About C3.ai

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.

About Genpact

Genpact Limited provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims. The Consumer and Healthcare segment provides demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, and digital commerce; and end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, and care services. The High Tech and Manufacturing segment offers industry-specific solutions for trust and safety, advertising sales support, customer and user experience, and customer care support; and direct and indirect procurement, logistics, field, aftermarket support, and engineering services. It also provides digital operation services; data-tech-Al services; finance and accounting services, such as accounts payable, invoice-to-cash, record to report, financial planning and analysis, and enterprise risk and compliance; CFO advisory services; supply chain, and sourcing and procurement services; sales and commercial, and marketing and experience services; and environmental, social and governance services. The company was founded in 1997 and is based in Hamilton, Bermuda.