Genpact (NYSE:G – Get Free Report) and Broadridge Financial Solutions (NYSE:BR – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Valuation & Earnings
This table compares Genpact and Broadridge Financial Solutions”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genpact | $5.08 billion | 1.42 | $552.49 million | $3.43 | 12.57 |
| Broadridge Financial Solutions | $7.48 billion | 2.93 | $1.12 billion | $9.05 | 21.37 |
Broadridge Financial Solutions has higher revenue and earnings than Genpact. Genpact is trading at a lower price-to-earnings ratio than Broadridge Financial Solutions, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
96.0% of Genpact shares are held by institutional investors. Comparatively, 90.0% of Broadridge Financial Solutions shares are held by institutional investors. 1.6% of Genpact shares are held by insiders. Comparatively, 1.0% of Broadridge Financial Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Genpact and Broadridge Financial Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genpact | 11.04% | 23.34% | 10.68% |
| Broadridge Financial Solutions | 13.94% | 40.32% | 12.85% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Genpact and Broadridge Financial Solutions, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genpact | 0 | 7 | 2 | 0 | 2.22 |
| Broadridge Financial Solutions | 0 | 4 | 4 | 0 | 2.50 |
Genpact currently has a consensus target price of $41.89, suggesting a potential downside of 2.81%. Broadridge Financial Solutions has a consensus target price of $212.71, suggesting a potential upside of 10.00%. Given Broadridge Financial Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Broadridge Financial Solutions is more favorable than Genpact.
Dividends
Genpact pays an annual dividend of $0.75 per share and has a dividend yield of 1.7%. Broadridge Financial Solutions pays an annual dividend of $4.36 per share and has a dividend yield of 2.3%. Genpact pays out 21.9% of its earnings in the form of a dividend. Broadridge Financial Solutions pays out 48.2% 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. Genpact has raised its dividend for 6 consecutive years and Broadridge Financial Solutions has raised its dividend for 18 consecutive years. Broadridge Financial Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Genpact has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Summary
Broadridge Financial Solutions beats Genpact on 14 of the 17 factors compared between the two stocks.
About Genpact
Genpact is a global professional services company that helps businesses improve operations and pursue digital transformation. Its services include business process management, consulting, data and analytics, artificial intelligence, and technology implementation. The company works with clients across industries such as banking and financial services, insurance, consumer goods, healthcare, life sciences, manufacturing, and technology. It serves organizations around the world through its global operations.
About Broadridge Financial Solutions
Broadridge Financial Solutions provides technology and operations services to financial institutions, public companies, and investors. Its platforms support investor communications, corporate governance, and the processing of financial transactions. The company’s services include preparing and distributing proxy materials and other shareholder communications, supporting shareholder voting, and providing solutions for trading, clearing, settlement, and asset servicing. Broadridge also offers technology for wealth and investment management, including portfolio and account management, data, and regulatory reporting.
Receive News & Ratings for Genpact Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Genpact and related companies with MarketBeat.com's FREE daily email newsletter.
