Wipro (NYSE:WIT) & Genpact (NYSE:G) Head to Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wipro	14.25%	14.97%	9.68%
Genpact	11.04%	22.70%	10.42%

Risk & Volatility

Wipro has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Genpact has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares Wipro and Genpact”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wipro	$9.87 billion	2.00	$1.41 billion	$0.14	13.46
Genpact	$5.08 billion	0.97	$552.49 million	$3.26	8.92

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

Dividends

Wipro pays an annual dividend of $0.12 per share and has a dividend yield of 6.4%. Genpact pays an annual dividend of $0.75 per share and has a dividend yield of 2.6%. Wipro pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Genpact pays out 23.0% of its earnings in the form of a dividend. Genpact has raised its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Wipro and Genpact, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	2	2	0	0	1.50
Genpact	0	7	1	0	2.12

Wipro presently has a consensus target price of $1.70, suggesting a potential downside of 9.81%. Genpact has a consensus target price of $43.29, suggesting a potential upside of 48.81%. Given Genpact’s stronger consensus rating and higher probable upside, analysts clearly believe Genpact is more favorable than Wipro.

Institutional and Insider Ownership

2.4% of Wipro shares are owned by institutional investors. Comparatively, 96.0% of Genpact shares are owned by institutional investors. 1.0% of Wipro shares are owned by insiders. Comparatively, 1.6% of Genpact shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Genpact beats Wipro on 10 of the 17 factors compared between the two stocks.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.

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.