Genpact Limited (G) vs Penguin Solutions, Inc. (PENG)

Genpact Limited and Penguin Solutions, Inc. are both Information Technology Services companies. Genpact Limited is the larger, with a market value of $5.8B against $3.7B — 1.6× the size. Genpact Limited trades at the lower P/E: 10.1× against 24.9×. Penguin Solutions, Inc. grew revenue faster over the last twelve months: 26.5% against 6.51%. Genpact Limited has the higher net margin (11.1% vs 8.74%) and the lower return on invested capital (14.9% vs 15.2%). Across the 21 metrics below, Genpact Limited leads on 15 and Penguin Solutions, Inc. on 6.

Valuation

Metric G PENG Information Technology Services median
P/E 10.12 24.87 15.42
P/S 1.11 2.45 1.08
P/B 2.23 7.90 1.76
Price to free cash flow 10.53 n/m 10.62
EV/EBITDA 7.41 26.28 8.98
EV/Sales 1.23 2.53 1.23
Earnings yield 9.88% 4.02% 4.17%
Free cash flow yield 9.50% (3.85%) 4.44%

Profitability

Metric G PENG Information Technology Services median
Gross margin 36.46% 27.66% 31.05%
Operating margin 14.83% 9.56% 3.30%
Net margin 11.10% 8.74% 2.09%
Free cash flow margin 10.52% (9.44%) 0.00%
Return on equity 22.45% 32.10% 3.67%
Return on assets 10.87% 6.88% 0.47%
Return on invested capital 14.89% 15.24% 0.57%

Growth

Metric G PENG Information Technology Services median
Revenue growth (TTM) 6.51% 26.50% 7.12%
EPS growth (last fiscal year) 9.82% 1,027.96% 3.37%
Revenue growth, 5-year CAGR 6.49% 10.41% 7.86%
Net income growth, 5-year CAGR 12.38% 47.95% 0.00%

Health

Metric G PENG Information Technology Services median
Debt to equity 0.45 1.47 0.45
Current ratio 2.00 1.88 1.66
Net debt to EBITDA 0.40 0.65 0.45

Dividend

Metric G PENG Information Technology Services median
Dividend yield 2.13% — 2.13%
Payout ratio 0.22 — 0.30

Size

Metric G PENG Information Technology Services median
Market cap 5.83b 3.67b 1.16b

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