EPAM Systems, Inc. (EPAM) vs Genpact Limited (G)

EPAM Systems, Inc. and Genpact Limited are both Information Technology Services companies. EPAM Systems, Inc. and Genpact Limited are of similar size ($5.6B and $5.5B). Genpact Limited trades at the lower P/E: 9.7× against 14.6×. EPAM Systems, Inc. grew revenue faster over the last twelve months: 10.8% against 6.51%. Genpact Limited has the higher net margin (11.1% vs 7.15%) and the higher return on invested capital (14.9% vs 12.8%). Across the 22 metrics below, Genpact Limited leads on 13 and EPAM Systems, Inc. on 9.

Valuation

Metric EPAM G Information Technology Services median
P/E 14.61 9.72 14.63
P/S 1.01 1.06 1.13
P/B 1.61 2.14 2.10
Price to free cash flow 11.71 10.11 10.11
EV/EBITDA 7.09 7.14 8.56
EV/Sales 0.87 1.19 1.20
Earnings yield 6.85% 10.29% 4.56%
Free cash flow yield 8.54% 9.89% 4.37%

Profitability

Metric EPAM G Information Technology Services median
Gross margin 29.41% 36.46% 31.05%
Operating margin 10.03% 14.83% 3.30%
Net margin 7.15% 11.10% 2.09%
Free cash flow margin 8.59% 10.52% 0.00%
Return on equity 11.18% 22.45% 4.12%
Return on assets 8.65% 10.87% 0.61%
Return on invested capital 12.78% 14.89% 0.57%

Growth

Metric EPAM G Information Technology Services median
Revenue growth (TTM) 10.76% 6.51% 7.12%
EPS growth (last fiscal year) (14.29%) 9.82% —
Revenue growth, 5-year CAGR 15.46% 6.49% 7.71%
Net income growth, 5-year CAGR 2.91% 12.38% 0.00%

Health

Metric EPAM G Information Technology Services median
Debt to equity 0.01 0.45 0.45
Current ratio 2.75 2.00 1.66
Net debt to EBITDA (1.97) 0.40 0.44

Dividend

Metric EPAM G Information Technology Services median
Dividend yield — 0.92% 1.21%
Payout ratio 0.00 0.24 0.00

Size

Metric EPAM G Information Technology Services median
Market cap 5.52b 5.61b 1.36b

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