Head to Head Analysis: Fujitsu (OTCMKTS:FJTSY) and Wipro (NYSE:WIT)

Fujitsu (OTCMKTS:FJTSY) and Wipro (NYSE:WIT) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

Fujitsu pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. Wipro pays an annual dividend of $0.12 per share and has a dividend yield of 5.6%. Fujitsu pays out 26.7% of its earnings in the form of a dividend. Wipro pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

0.1% of Fujitsu shares are owned by institutional investors. Comparatively, 2.4% of Wipro shares are owned by institutional investors. 1.0% of Wipro shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Fujitsu and Wipro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fujitsu	$23.31 billion	1.78	$1.45 billion	$0.45	52.58
Wipro	$9.87 billion	2.28	$1.41 billion	$0.14	15.32

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

Volatility & Risk

Fujitsu has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Wipro has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Fujitsu and Wipro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fujitsu	N/A	N/A	N/A
Wipro	14.25%	14.79%	9.66%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Fujitsu and Wipro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fujitsu	0	2	0	0	2.00
Wipro	1	2	0	0	1.67

Summary

Wipro beats Fujitsu on 8 of the 14 factors compared between the two stocks.

About Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.