Infosys Limited (NYSE: INFY) is one of 186 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare Infosys Limited to similar businesses based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Infosys Limited and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infosys Limited 2 9 1 0 1.92
Infosys Limited Competitors 721 4557 7333 167 2.54

Infosys Limited currently has a consensus price target of $15.06, indicating a potential upside of 1.50%. As a group, “IT Services & Consulting” companies have a potential upside of 4.19%. Given Infosys Limited’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Infosys Limited has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Infosys Limited 21.04% 21.05% 17.17%
Infosys Limited Competitors -13.74% -233.76% -1.91%

Dividends

Infosys Limited pays an annual dividend of $0.39 per share and has a dividend yield of 2.6%. Infosys Limited pays out 40.2% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.7% and pay out 38.2% of their earnings in the form of a dividend. Infosys Limited has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Infosys Limited and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Infosys Limited $10.21 billion $2.14 billion 15.30
Infosys Limited Competitors $2.79 billion $290.83 million 280.73

Infosys Limited has higher revenue and earnings than its rivals. Infosys Limited 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.

Insider & Institutional Ownership

19.5% of Infosys Limited shares are held by institutional investors. Comparatively, 62.4% of shares of all “IT Services & Consulting” companies are held by institutional investors. 22.4% of Infosys Limited shares are held by insiders. Comparatively, 16.3% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Infosys Limited has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Infosys Limited’s rivals have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Summary

Infosys Limited rivals beat Infosys Limited on 8 of the 15 factors compared.

Infosys Limited Company Profile

Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services. The Company, along with its subsidiaries, provides business information technology services comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation. Its segments are Financial Services and Insurance (FSI), Manufacturing and Hi-tech (MFG & Hi-TECH), Energy & utilities, Communication and Services (ECS), Retail, Consumer packaged goods and Logistics (RCL), and Life Sciences and Healthcare (LSH).

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