Genpact (NYSE:G) and ATIF (NASDAQ:ATIF) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Dividends

Genpact pays an annual dividend of $0.34 per share and has a dividend yield of 0.9%. ATIF does not pay a dividend. Genpact pays out 21.3% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Genpact and ATIF’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genpact $3.00 billion 2.51 $282.02 million $1.60 24.73
ATIF N/A N/A N/A N/A N/A

Genpact has higher revenue and earnings than ATIF.

Analyst Recommendations

This is a summary of current ratings for Genpact and ATIF, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genpact 0 4 5 0 2.56
ATIF 0 0 0 0 N/A

Genpact currently has a consensus price target of $39.86, suggesting a potential upside of 0.74%. Given Genpact’s higher probable upside, equities research analysts clearly believe Genpact is more favorable than ATIF.

Profitability

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

Net Margins Return on Equity Return on Assets
Genpact 8.77% 21.87% 8.46%
ATIF N/A N/A N/A

Insider & Institutional Ownership

95.0% of Genpact shares are owned by institutional investors. Comparatively, 0.1% of ATIF shares are owned by institutional investors. 1.9% of Genpact shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Genpact beats ATIF on 9 of the 10 factors compared between the two stocks.

Genpact Company Profile

Genpact Limited provides business process outsourcing and information technology (IT) services North and Latin America, India, rest of Asia, and Europe. Its finance and accounting services include accounts payable, such as document management, invoice processing, approval and resolution management, and travel and expense processing; invoice-to-cash services, including customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services; record to report services comprising accounting, treasury, tax, product cost accounting, and closing and reporting services; enterprise performance management consisting of budgeting, forecasting, and business performance reporting; and enterprise risk and compliance services, including operational risks and controls. It also provides transformation services; core industry operation services; and sourcing and procurement services, such as direct and indirect strategic sourcing, category management, spend analytics, procurement operations, master data management, and other procurement and supply chain advisory services. In addition, the company's IT services comprise end-user computing support, infrastructure management, application production support, and database management services, as well as business intelligence and data, enterprise resource planning, quality assurance, technology integration, and business intelligence reporting services. It serves banking and financial services, capital markets, insurance, consumer product goods and retail, life sciences and healthcare, infrastructure, manufacturing and services, insurance, and high-tech industries. Genpact Limited was founded in 1997 and is based in Hamilton, Bermuda.

ATIF Company Profile

ATIF Holdings Limited provides financial consulting services to small and medium-sized enterprises in Asia. The company offers going public consulting and international financial consulting services. It also operates chinacnnm.com, a news and media Website that provides social news and financial information to the Asian region. The company was formerly known as Asia Times Holdings Limited and changed its name to ATIF Holdings Limited in March 2019. ATIF Holdings Limited was founded in 2015 and is based in Shenzhen, China.

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