Skillsoft (NYSE:SKIL) vs. Genpact (NYSE:G) Critical Analysis

Skillsoft (NYSE:SKIL) and Genpact (NYSE:G) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Skillsoft and Genpact, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillsoft	1	2	0	0	1.67
Genpact	0	7	2	0	2.22

Genpact has a consensus target price of $39.33, suggesting a potential upside of 14.39%. Given Genpact’s stronger consensus rating and higher possible upside, analysts plainly believe Genpact is more favorable than Skillsoft.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Skillsoft	-36.13%	-74.19%	4.10%
Genpact	11.04%	23.34%	10.68%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillsoft	$512.67 million	0.11	-$139.82 million	($18.53)	-0.34
Genpact	$5.08 billion	1.13	$552.49 million	$3.37	10.20

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

Institutional and Insider Ownership

87.0% of Skillsoft shares are held by institutional investors. Comparatively, 96.0% of Genpact shares are held by institutional investors. 16.2% of Skillsoft shares are held by insiders. Comparatively, 1.6% of Genpact shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Skillsoft has a beta of 2.41, indicating that its stock price is 141% more volatile than the S&P 500. Comparatively, Genpact has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Summary

Genpact beats Skillsoft on 12 of the 14 factors compared between the two stocks.

About Skillsoft

Skillsoft Corp. provides content and platform and instructor-led training services in the United States and internationally. The company's Content & Platform segment engages in the sale, marketing, and delivery of its content learning solutions in areas, such as leadership and business, technology and developer, and compliance comprising individualized coaching, as well as technical skill areas. This segment also offers Percipio, an AI-driven online learning platform that delivers a learning experience through SaaS solutions. Its Instructor-Led Training segment provides training solutions, including information technology and business skills for corporations and their employees by guiding its customers throughout their lifelong technology learning journey by offering relevant and up-to-date skills training through instructor-led and self-paced, vendor certified, and other proprietary offerings. The company markets and sells their offerings to businesses of many sizes, government agencies, educational institutions, and resellers. Skillsoft Corp. is headquartered in Greenwood Village, Colorado.

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.