Critical Analysis: Infosys (NYSE:INFY) & WM Technology (NASDAQ:MAPS)

Infosys (NYSE:INFY) and WM Technology (NASDAQ:MAPS) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Earnings & Valuation

This table compares Infosys and WM Technology”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	2.56	$3.31 billion	$0.81	15.71
WM Technology	$174.70 million	0.27	$1.96 million	$0.02	14.99

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

Insider and Institutional Ownership

16.2% of Infosys shares are owned by institutional investors. Comparatively, 22.0% of WM Technology shares are owned by institutional investors. 22.4% of Infosys shares are owned by company insiders. Comparatively, 19.7% of WM Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Infosys and WM Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Infosys	1	10	0	0	1.91
WM Technology	1	0	0	0	1.00

Infosys currently has a consensus target price of $11.45, suggesting a potential downside of 10.01%. Given Infosys’ stronger consensus rating and higher probable upside, research analysts clearly believe Infosys is more favorable than WM Technology.

Profitability

This table compares Infosys and WM Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Infosys	16.38%	33.91%	20.54%
WM Technology	1.12%	1.51%	1.04%

Volatility and Risk

Infosys has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, WM Technology has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Summary

Infosys beats WM Technology on 11 of the 13 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 WM Technology

WM Technology, Inc. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States and internationally. The company offers Weedmaps marketplace that allows cannabis users to search for and browse cannabis products from retailers and brands, and reserve products from local retailers; and education and learning information to help newer consumers learn about the types of products to purchase. It also provides monthly subscription-based business software solutions, including WM Listings, WM Orders, WM Store, WM Connectors, and WM Insights as well as other add-on products, such as WM Ads, WM AdSuite, WM Customer Relationship Management, WM Dispatch, and WM Screens. WM Technology, Inc. was founded in 2008 and is headquartered in Irvine, California.