Brady (NYSE: BRC) and Genpact (NYSE:G) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Institutional and Insider Ownership
76.8% of Brady shares are held by institutional investors. Comparatively, 91.2% of Genpact shares are held by institutional investors. 15.6% of Brady shares are held by insiders. Comparatively, 1.4% of Genpact shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Brady and Genpact’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brady||$1.11 billion||1.81||$95.64 million||$1.88||20.77|
|Genpact||$2.57 billion||2.50||$269.68 million||$1.38||24.13|
Genpact has higher revenue and earnings than Brady. Brady is trading at a lower price-to-earnings ratio than Genpact, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Brady has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Genpact has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
Brady pays an annual dividend of $0.83 per share and has a dividend yield of 2.1%. Genpact pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Brady pays out 44.1% of its earnings in the form of a dividend. Genpact pays out 17.4% 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 32 consecutive years.
This table compares Brady and Genpact’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Brady and Genpact, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Brady presently has a consensus target price of $40.50, indicating a potential upside of 3.71%. Genpact has a consensus target price of $33.14, indicating a potential downside of 0.47%. Given Brady’s higher possible upside, research analysts plainly believe Brady is more favorable than Genpact.
Genpact beats Brady on 12 of the 17 factors compared between the two stocks.
Brady Company Profile
Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.
Genpact Company Profile
Genpact Limited is engaged in providing digitally powered business process management and services. The Company is also engaged in designing, transforming and running a combination of processes, as well as providing solutions that combine elements of its service offerings. The Company’s segments include Business process outsourcing and Information technology services. The Company offers various vertical activities, which include banking and financial services, capital markets, consumer product goods services, healthcare, infrastructure and manufacturing services, insurance and life sciences. In addition to these vertical activities, it also offers analytics and research, collections and customer services, consulting and transformation services, core industry operations services, enterprise application services, finance and accounting (F&A) services, information technology (IT) infrastructure management services, and supply chain and procurement services.
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