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

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for CLPS Incorporation and Infosys, as reported by MarketBeat.com.

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLPS Incorporation	$166.79 million	0.15	-$7.05 million	N/A	N/A
Infosys	$20.16 billion	2.50	$3.32 billion	$0.80	15.54

Infosys has higher revenue and earnings than CLPS Incorporation.

Risk and Volatility

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

Institutional & Insider Ownership

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

Profitability

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

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

Summary

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

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.

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.