Analyzing Infosys (NYSE:INFY) & CLPS Incorporation (NASDAQ:CLPS)

Infosys (NYSE:INFY) and CLPS Incorporation (NASDAQ:CLPS) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Risk and Volatility

Infosys has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, CLPS Incorporation has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares Infosys and CLPS Incorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Infosys	16.44%	32.64%	20.16%
CLPS Incorporation	N/A	N/A	N/A

Valuation and Earnings

This table compares Infosys and CLPS Incorporation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Infosys	$20.16 billion	2.50	$3.32 billion	$0.80	15.54
CLPS Incorporation	$164.23 million	0.16	-$7.05 million	N/A	N/A

Infosys has higher revenue and earnings than CLPS Incorporation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Infosys and CLPS Incorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Infosys	1	6	0	0	1.86
CLPS Incorporation	1	0	0	0	1.00

Infosys currently has a consensus price target of $14.22, suggesting a potential upside of 14.35%. Given Infosys’ stronger consensus rating and higher probable upside, equities analysts plainly believe Infosys is more favorable than CLPS Incorporation.

Insider & Institutional Ownership

16.2% of Infosys shares are held by institutional investors. Comparatively, 0.2% of CLPS Incorporation shares are held by institutional investors. 22.4% of Infosys shares are held by insiders. Comparatively, 58.7% of CLPS Incorporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Infosys beats CLPS Incorporation on 10 of the 11 factors compared between the two stocks.

About Infosys

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.