Syntel (SYNT) versus Infosys (INFY) Head-To-Head Comparison

Syntel (NASDAQ:SYNT) and Infosys (NYSE:INFY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

This table compares Syntel and Infosys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Syntel 18.42% 3,237.31% 38.35%
Infosys 22.30% 23.22% 18.66%

Earnings and Valuation

This table compares Syntel and Infosys’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Syntel $923.83 million 3.68 $166.26 million $2.02 20.29
Infosys $10.94 billion 3.79 $2.49 billion $0.50 19.08

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

Analyst Recommendations

This is a breakdown of current recommendations for Syntel and Infosys, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syntel 2 10 0 0 1.83
Infosys 3 9 3 0 2.00

Syntel currently has a consensus price target of $27.00, suggesting a potential downside of 34.13%. Infosys has a consensus price target of $14.79, suggesting a potential upside of 55.01%. Given Infosys’ stronger consensus rating and higher probable upside, analysts plainly believe Infosys is more favorable than Syntel.

Institutional and Insider Ownership

40.8% of Syntel shares are held by institutional investors. Comparatively, 8.8% of Infosys shares are held by institutional investors. 58.1% of Syntel shares are held by insiders. Comparatively, 22.4% of Infosys shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Syntel has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Infosys has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Dividends

Infosys pays an annual dividend of $0.29 per share and has a dividend yield of 3.0%. Syntel does not pay a dividend. Infosys pays out 58.0% of its earnings in the form of a dividend. Infosys has increased its dividend for 5 consecutive years.

Summary

Infosys beats Syntel on 9 of the 17 factors compared between the two stocks.

About Syntel

Syntel, Inc. provides digital transformation, information technology (IT), and knowledge process outsourcing (KPO) services worldwide. The company operates through Banking and Financial Services; Healthcare and Life Sciences; Insurance; Manufacturing; and Retail, Logistics, and Telecom segments. It provides end-to-end, integrated application, and infrastructure management services; develops software applications; and offers legacy modernization services, such as software analysis, language conversion, reverse engineering, database migration, code optimization, cloud onboarding and migration, ecosystem migration, testing, and management. The company also provides consulting, implementation, and management services for enterprise architecture, data warehousing, business intelligence, and enterprise application integration, as well as mobility, big data, analytics, and Internet of Things technologies. In addition, it offers KPO services that provide outsourced solutions for knowledge and business processes. The company offers its products to various companies in the banking and financial services, healthcare and life sciences, insurance, manufacturing, retail, logistics, and telecom industries. Syntel, Inc. was founded in 1980 and is headquartered in Troy, Michigan.

About Infosys

Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally. It provides business information technology services, including application development and maintenance, independent validation, infrastructure management, and business process management services, as well as engineering services, such as engineering and life cycle solutions; and consulting and systems integration services comprising consulting, enterprise solutions, systems integration, and advanced technologies. The company's products include Finacle, a banking solution that provides analytics, core banking, consumer e-banking, corporate e-banking, Islamic banking, mobile banking, origination, payments, SME enable, treasury, wealth management, and youth banking solutions. Its products also comprise Infosys Nia, a knowledge-based AI platform; Infosys Information Platform, an analytics platform that enables to get insights from various data sources for decisions across industries; and AssistEdge, CreditFinanceEdge, ProcureEdge, and TradeEdge that are cloud-hosted business platforms, as well as analytics, cloud, and digital transformation services. The company serves clients in the financial services, life sciences, healthcare and insurance, manufacturing, retail, consumer packaged goods and logistics, hi-tech, communications, services, utilities, resources, energy, and other industries. The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was founded in 1981 and is headquartered in Bengaluru, India.

Receive News & Ratings for Syntel Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Syntel and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply