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 ($6.3B and $6.3B). Genpact Limited trades at the lower P/E: 11.0× against 16.5×. 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 14 and EPAM Systems, Inc. on 8.

Valuation

Metric EPAM G Information Technology Services median
P/E 16.49 10.96 16.42
P/S 1.14 1.20 1.06
P/B 1.81 2.42 1.57
Price to free cash flow 13.21 11.40 11.62
EV/EBITDA 8.15 7.96 9.74
EV/Sales 1.00 1.33 1.23
Earnings yield 6.06% 9.13% 4.25%
Free cash flow yield 7.57% 8.77% 4.50%

Profitability

Metric EPAM G Information Technology Services median
Gross margin 29.41% 36.46% 29.97%
Operating margin 10.03% 14.83% 3.30%
Net margin 7.15% 11.10% 2.09%
Free cash flow margin 8.59% 10.52% 1.51%
Return on equity 11.18% 22.45% 3.67%
Return on assets 8.65% 10.87% 0.47%
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% 1.38%
Revenue growth, 5-year CAGR 15.46% 6.49% 7.86%
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 0.45

Dividend

Metric EPAM G Information Technology Services median
Dividend yield — 1.97% 1.97%
Payout ratio — 0.22 0.30

Size

Metric EPAM G Information Technology Services median
Market cap 6.31b 6.29b 1.11b

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