Infosys (NYSE:INFY – Get Free Report) and NEC (OTCMKTS:NIPNF – Get Free Report) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.
Insider and Institutional Ownership
16.2% of Infosys shares are owned by institutional investors. 22.4% of Infosys shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Infosys and NEC, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Infosys | 2 | 8 | 0 | 0 | 1.80 |
| NEC | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Infosys and NEC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Infosys | 16.38% | 33.91% | 20.54% |
| NEC | N/A | N/A | N/A |
Volatility and Risk
Infosys has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, NEC has a beta of -0.47, meaning that its stock price is 147% less volatile than the S&P 500.
Valuation and Earnings
This table compares Infosys and NEC”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Infosys | $20.16 billion | 2.51 | $3.31 billion | $0.81 | 15.46 |
| NEC | $25.69 billion | 0.32 | $412.83 million | $1.64 | 19.51 |
Infosys has higher earnings, but lower revenue than NEC. Infosys is trading at a lower price-to-earnings ratio than NEC, indicating that it is currently the more affordable of the two stocks.
Summary
Infosys beats NEC on 10 of the 13 factors compared between the two stocks.
About Infosys
Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.
About NEC
NEC Corporation provides information and communication technology solutions in Japan and internationally. It operates through five segments: Public Solutions Business, Public Infrastructure Business, Enterprise Business, Network Services Business, and Global Business. It provides systems integration services, including systems implementation and consulting; maintenance and support services; outsourcing and cloud services; and system equipment. The company also offers network infrastructure products comprising core network equipment, mobile phone base stations, optical transmission systems, and routers and switches; and services and management solutions, such as operation support system (OSS), business support system (BSS), and services. In addition, it provides digital government and digital finance solutions; software services for service providers, including OSS/BSS; and network infrastructure comprising submarine systems and wireless backhaul. Further, the company offers business computers, servers, NEC HPC solutions, and thin client solutions; data storage solutions; embedded systems; fiber optic devices; CONNEXIVE, an IoT platform software; PASOLINK, a mobile backhaul; optical fiber sensing products; submarine systems; and open optical transport products. Additionally, it provides EXPRESSCLUSTER X, a BC/DR solutions; NIAS, a solution for file server management; ERP solutions; MasterScope, an integrated administration software suite; Obbligato, a product lifecycle management; SaaS Solutions; WebOTX, a service execution platform; and unified communications and collaboration solutions. It serves aerospace, agriculture, aviation, broadcasting, finance, government, healthcare, hospitality, logistics, manufacturing, retail, telecom, and transportation industries. The company was formerly known as Nippon Electric Company, Limited and changed its name to NEC Corporation in April 1983. NEC Corporation was incorporated in 1899 and is headquartered in Tokyo, Japan.
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