Comparing Genpact (G) & Its Peers

Genpact (NYSE:G) is one of 203 publicly-traded companies in the “Professional Services” industry, but how does it compare to its rivals? We will compare Genpact to similar companies based on the strength of its risk, analyst recommendations, valuation, earnings, profitability, dividends and institutional ownership.

Insider & Institutional Ownership

96.0% of Genpact shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 1.6% of Genpact shares are held by company insiders. Comparatively, 17.2% of shares of all “Professional Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Genpact pays an annual dividend of $0.75 per share and has a dividend yield of 1.9%. Genpact pays out 22.3% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.5% and pay out -118.5% of their earnings in the form of a dividend. Genpact has increased its dividend for 6 consecutive years. Genpact lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Genpact and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genpact	11.04%	23.34%	10.68%
Genpact Competitors	-0.60%	20.41%	4.31%

Valuation & Earnings

This table compares Genpact and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Genpact	$5.08 billion	$552.49 million	12.01
Genpact Competitors	$3.32 billion	$228.36 million	35.61

Genpact has higher revenue and earnings than its rivals. Genpact is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Genpact and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genpact	0	7	2	0	2.22
Genpact Competitors	1580	6438	9165	430	2.48

Genpact currently has a consensus price target of $39.67, suggesting a potential downside of 1.97%. As a group, “Professional Services” companies have a potential upside of 26.65%. Given Genpact’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Genpact has less favorable growth aspects than its rivals.

Risk and Volatility

Genpact has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Genpact’s rivals have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Summary

Genpact rivals beat Genpact on 9 of the 15 factors compared.

Genpact Company Profile

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.