Genpact Limited (G) vs Parsons Corporation (PSN)

Genpact Limited and Parsons Corporation are both Information Technology Services companies. Genpact Limited is the larger, with a market value of $6.3B against $4.7B — 1.3× the size. Genpact Limited trades at the lower P/E: 11.0× against 30.0×. Genpact Limited grew revenue faster over the last twelve months: 6.51% against −5.84%. Genpact Limited has the higher net margin (11.1% vs 2.50%) and the higher return on invested capital (14.9% vs 4.90%). Across the 22 metrics below, Genpact Limited leads on 17 and Parsons Corporation on 5.

Valuation

Metric G PSN Information Technology Services median
P/E 10.96 30.03 16.42
P/S 1.20 0.75 1.06
P/B 2.42 1.72 1.57
Price to free cash flow 11.40 15.29 11.62
EV/EBITDA 7.96 13.24 9.74
EV/Sales 1.33 0.94 1.23
Earnings yield 9.13% 3.33% 4.25%
Free cash flow yield 8.77% 6.54% 4.50%

Profitability

Metric G PSN Information Technology Services median
Gross margin 36.46% 21.96% 29.97%
Operating margin 14.83% 4.93% 3.30%
Net margin 11.10% 2.50% 2.09%
Free cash flow margin 10.52% 4.91% 1.51%
Return on equity 22.45% 5.86% 3.67%
Return on assets 10.87% 2.66% 0.47%
Return on invested capital 14.89% 4.90% 0.57%

Growth

Metric G PSN Information Technology Services median
Revenue growth (TTM) 6.51% (5.84%) 7.12%
EPS growth (last fiscal year) 9.82% 3.77% 1.38%
Revenue growth, 5-year CAGR 6.49% 10.18% 7.86%
Net income growth, 5-year CAGR 12.38% 19.60% 0.00%

Health

Metric G PSN Information Technology Services median
Debt to equity 0.45 0.54 0.45
Current ratio 2.00 1.66 1.66
Net debt to EBITDA 0.40 1.43 0.45

Dividend

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

Size

Metric G PSN Information Technology Services median
Market cap 6.29b 4.71b 1.11b

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