Comparing Fujitsu (OTCMKTS:FJTSY) & Genpact (NYSE:G)

Fujitsu (OTCMKTS:FJTSY) and Genpact (NYSE:G) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Fujitsu and Genpact, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fujitsu	0	0	0	0	0.00
Genpact	0	4	3	0	2.43

Genpact has a consensus price target of $50.14, suggesting a potential upside of 11.39%. Given Genpact’s stronger consensus rating and higher probable upside, analysts plainly believe Genpact is more favorable than Fujitsu.

Risk and Volatility

Fujitsu has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Genpact has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Dividends

Fujitsu pays an annual dividend of $0.13 per share and has a dividend yield of 0.5%. Genpact pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Genpact pays out 23.2% of its earnings in the form of a dividend. Genpact has increased its dividend for 6 consecutive years. Genpact is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fujitsu	8.72%	17.48%	9.63%
Genpact	10.88%	22.35%	10.50%

Insider and Institutional Ownership

0.1% of Fujitsu shares are owned by institutional investors. Comparatively, 96.0% of Genpact shares are owned by institutional investors. 2.8% of Genpact shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Fujitsu and Genpact”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fujitsu	$23.31 billion	1.94	$1.45 billion	N/A	N/A
Genpact	$4.77 billion	1.65	$513.67 million	$2.93	15.36

Fujitsu has higher revenue and earnings than Genpact.

Summary

Genpact beats Fujitsu on 11 of the 15 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 Genpact

Genpact Limited provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims. The Consumer and Healthcare segment provides demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, and digital commerce; and end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, and care services. The High Tech and Manufacturing segment offers industry-specific solutions for trust and safety, advertising sales support, customer and user experience, and customer care support; and direct and indirect procurement, logistics, field, aftermarket support, and engineering services. It also provides digital operation services; data-tech-Al services; finance and accounting services, such as accounts payable, invoice-to-cash, record to report, financial planning and analysis, and enterprise risk and compliance; CFO advisory services; supply chain, and sourcing and procurement services; sales and commercial, and marketing and experience services; and environmental, social and governance services. The company was founded in 1997 and is based in Hamilton, Bermuda.