Financial Contrast: American Noble Gas (NYSE:INFY) and Genpact (NYSE:G)

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

Profitability

This table compares Genpact and American Noble Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genpact	11.01%	22.55%	10.94%
American Noble Gas	16.16%	30.60%	19.26%

Analyst Ratings

This is a summary of recent ratings and price targets for Genpact and American Noble Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genpact	0	7	3	0	2.30
American Noble Gas	2	6	2	0	2.00

Genpact presently has a consensus price target of $51.00, suggesting a potential upside of 11.06%. American Noble Gas has a consensus price target of $17.65, suggesting a potential downside of 5.46%. Given Genpact’s stronger consensus rating and higher probable upside, research analysts plainly believe Genpact is more favorable than American Noble Gas.

Dividends

Genpact pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. American Noble Gas pays an annual dividend of $0.44 per share and has a dividend yield of 2.4%. Genpact pays out 21.9% of its earnings in the form of a dividend. American Noble Gas pays out 56.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Genpact has raised its dividend for 6 consecutive years.

Insider & Institutional Ownership

96.0% of Genpact shares are owned by institutional investors. Comparatively, 16.2% of American Noble Gas shares are owned by institutional investors. 3.1% of Genpact shares are owned by company insiders. Comparatively, 22.4% of American Noble Gas shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Genpact and American Noble Gas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genpact	$4.77 billion	1.66	$513.67 million	$3.10	14.81
American Noble Gas	$19.28 billion	4.01	$3.16 billion	$0.78	23.94

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

Volatility & Risk

Genpact has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, American Noble Gas has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Summary

American Noble Gas beats Genpact on 10 of the 17 factors compared between the two stocks.

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.

About American Noble Gas

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.