American Noble Gas (NYSE:INFY) versus Genpact (NYSE:G) Financial Comparison

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

Dividends

American Noble Gas pays an annual dividend of $0.44 per share and has a dividend yield of 2.4%. Genpact pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. American Noble Gas pays out 57.1% of its earnings in the form of a dividend. Genpact pays out 21.9% 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for American Noble Gas and Genpact, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Noble Gas	2	6	2	0	2.00
Genpact	0	7	2	0	2.22

American Noble Gas currently has a consensus price target of $17.65, suggesting a potential downside of 3.20%. Genpact has a consensus price target of $50.50, suggesting a potential upside of 12.91%. Given Genpact’s stronger consensus rating and higher probable upside, analysts plainly believe Genpact is more favorable than American Noble Gas.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Noble Gas	$19.28 billion	3.92	$3.16 billion	$0.77	23.68
Genpact	$4.77 billion	1.62	$513.67 million	$3.10	14.43

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.

Profitability

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

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

Volatility and Risk

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

Institutional and Insider Ownership

16.2% of American Noble Gas shares are held by institutional investors. Comparatively, 96.0% of Genpact shares are held by institutional investors. 22.4% of American Noble Gas shares are held by insiders. Comparatively, 2.8% of Genpact shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

American Noble Gas beats Genpact on 10 of the 16 factors compared between the two stocks.

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.

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.