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

EPAM Systems, Inc. and Genpact Limited are both Information Technology Services companies. EPAM Systems, Inc. is the larger, with a market value of $8.6B against $6.9B — 1.2× the size. Genpact Limited trades at the lower P/E: 12.3× against 19.8×. Genpact Limited grew revenue faster over the last twelve months: 6.68% against 6.62%. Genpact Limited has the higher net margin (11.0% vs 7.53%) and the lower return on invested capital (12.8% vs 14.0%). Across the 22 metrics below, Genpact Limited leads on 12 and EPAM Systems, Inc. on 10.

Valuation

Metric EPAM G Information Technology Services median
P/E 19.82 12.25 16.12
P/S 1.45 1.33 1.14
P/B 2.28 2.63 1.73
Price to free cash flow 17.39 21.48 13.77
EV/EBITDA 10.04 8.89 9.89
EV/Sales 1.28 1.46 1.34
Earnings yield 5.04% 8.16% 3.10%
Free cash flow yield 5.75% 4.66% 0.06%

Profitability

Metric EPAM G Information Technology Services median
Gross margin 29.86% 36.88% 30.04%
Operating margin 10.52% 14.93% 1.81%
Net margin 7.53% 11.01% 0.79%
Free cash flow margin 8.33% 7.48% 0.00%
Return on equity 11.61% 22.41% 0.00%
Return on assets 8.93% 10.70% 0.00%
Return on invested capital 13.99% 12.84% 0.00%

Growth

Metric EPAM G Information Technology Services median
Revenue growth (TTM) 6.62% 6.68% 4.85%
EPS growth (last fiscal year) (14.29%) 9.82% 3.57%
Revenue growth, 5-year CAGR 15.46% 6.49% 6.93%
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 0.43 0.31
Current ratio 2.76 1.95 1.69
Net debt to EBITDA (1.97) 0.40 0.55

Dividend

Metric EPAM G Information Technology Services median
Dividend yield — 1.73% 1.97%
Payout ratio — 0.21 0.29

Size

Metric EPAM G Information Technology Services median
Market cap 8.55b 6.87b 1.02b

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