General Finance (GFN) and Genpact (G) Head-To-Head Contrast
General Finance (NASDAQ: GFN) and Genpact (NYSE:G) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
27.6% of General Finance shares are held by institutional investors. Comparatively, 91.2% of Genpact shares are held by institutional investors. 25.9% of General Finance shares are held by insiders. Comparatively, 1.4% 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.
This is a summary of current ratings and price targets for General Finance and Genpact, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
General Finance presently has a consensus price target of $9.20, indicating a potential upside of 35.29%. Genpact has a consensus price target of $33.14, indicating a potential upside of 4.42%. Given General Finance’s higher possible upside, research analysts clearly believe General Finance is more favorable than Genpact.
Genpact pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. General Finance does not pay a dividend. Genpact pays out 17.4% of its earnings in the form of a dividend.
Volatility and Risk
General Finance has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Genpact has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.
Valuation & Earnings
This table compares General Finance and Genpact’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|General Finance||$276.93 million||0.65||-$2.96 million||($0.21)||-32.38|
|Genpact||$2.57 billion||2.38||$269.68 million||$1.38||23.00|
Genpact has higher revenue and earnings than General Finance. General Finance is trading at a lower price-to-earnings ratio than Genpact, indicating that it is currently the more affordable of the two stocks.
This table compares General Finance and Genpact’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Genpact beats General Finance on 12 of the 16 factors compared between the two stocks.
General Finance Company Profile
General Finance Corporation is a specialty rental services company. The Company offers a range of portable storage units, including its core 20-feet and 40-feet steel containers, office container, mobile office and modular space products and steel tanks. It has two geographic areas that include its four operating segments: the Asia-Pacific area, consisting of the leasing operations of Royal Wolf Holdings Limited and its Australian and New Zealand subsidiaries (Royal Wolf), and North America, consisting of the combined leasing operations of Pac-Van, Inc. and its Canadian subsidiary, PV Acquisition Corp. (Pac-Van) and Lone Star Tank Rental Inc. (Lone Star), and the manufacturing operations of GFN Manufacturing Corporation and its subsidiary, Southern Frac, LLC (Southern Frac). As of June 30, 2016, the Company provided its storage solutions to over 41,000 customers across a range of industries, including commercial, construction, retail, transportation, education and others.
Genpact Company Profile
Genpact Limited is engaged in providing digitally powered business process management and services. The Company is also engaged in designing, transforming and running a combination of processes, as well as providing solutions that combine elements of its service offerings. The Company’s segments include Business process outsourcing and Information technology services. The Company offers various vertical activities, which include banking and financial services, capital markets, consumer product goods services, healthcare, infrastructure and manufacturing services, insurance and life sciences. In addition to these vertical activities, it also offers analytics and research, collections and customer services, consulting and transformation services, core industry operations services, enterprise application services, finance and accounting (F&A) services, information technology (IT) infrastructure management services, and supply chain and procurement services.
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