Exponent (EXPO) and Genpact Limited (G) Financial Survey

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

Institutional & Insider Ownership

88.3% of Exponent shares are owned by institutional investors. Comparatively, 92.2% of Genpact Limited shares are owned by institutional investors. 2.8% of Exponent shares are owned by insiders. Comparatively, 1.6% of Genpact Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Exponent and Genpact Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Exponent $311.50 million 6.19 $71.89 million $1.93 38.76
Genpact Limited $2.62 billion 2.15 $438.33 million $1.33 21.91

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

Analyst Recommendations

This is a summary of recent ratings for Exponent and Genpact Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exponent 0 0 1 0 3.00
Genpact Limited 0 2 5 0 2.71

Exponent presently has a consensus target price of $75.00, suggesting a potential upside of 0.27%. Genpact Limited has a consensus target price of $31.67, suggesting a potential upside of 8.67%. Given Genpact Limited’s higher probable upside, analysts clearly believe Genpact Limited is more favorable than Exponent.

Volatility and Risk

Exponent has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Genpact Limited has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Exponent 15.94% 16.52% 11.53%
Genpact Limited 10.22% 23.33% 9.85%

Dividends

Exponent pays an annual dividend of $0.84 per share and has a dividend yield of 1.1%. Genpact Limited pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Exponent pays out 43.5% of its earnings in the form of a dividend. Genpact Limited pays out 18.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Exponent beats Genpact Limited on 9 of the 16 factors compared between the two stocks.

Exponent Company Profile

Exponent, Inc. (Exponent), along with its subsidiaries, is a science and engineering consulting company. Exponent provides engineering and scientific consulting services to clients around the world. Its service offerings are provided on a project-by-project basis. It operates in two segments: Engineering and Other Scientific, and Environmental and Health. Its Engineering and Other Scientific segment includes biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences and vehicle analysis services. Its Environmental and Health segment includes chemical regulation and food safety; ecological and biological sciences; environmental and earth sciences, and health sciences. Exponent serves clients in automotive, government, health, insurance, manufacturing and technology, among others.

Genpact Limited 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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