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 $6.9B against $5.3B — 1.3× the size. Genpact Limited trades at the lower P/E: 12.3× against 32.3×. Genpact Limited grew revenue faster over the last twelve months: 6.68% against −2.67%. Genpact Limited has the higher net margin (11.0% vs 2.33%) and the higher return on invested capital (12.8% vs 5.02%). Across the 22 metrics below, Genpact Limited leads on 15 and Parsons Corporation on 7.

Valuation

Metric G PSN Information Technology Services median
P/E 12.25 32.27 16.12
P/S 1.33 0.81 1.14
P/B 2.63 1.87 1.73
Price to free cash flow 21.48 12.56 13.77
EV/EBITDA 8.89 13.85 9.89
EV/Sales 1.46 0.98 1.34
Earnings yield 8.16% 3.10% 3.10%
Free cash flow yield 4.66% 7.96% 0.06%

Profitability

Metric G PSN Information Technology Services median
Gross margin 36.88% 22.21% 30.04%
Operating margin 14.93% 4.84% 1.81%
Net margin 11.01% 2.33% 0.79%
Free cash flow margin 7.48% 6.49% 0.00%
Return on equity 22.41% 5.45% 0.00%
Return on assets 10.70% 2.52% 0.00%
Return on invested capital 12.84% 5.02% 0.00%

Growth

Metric G PSN Information Technology Services median
Revenue growth (TTM) 6.68% (2.67%) 4.85%
EPS growth (last fiscal year) 9.82% 3.77% 3.57%
Revenue growth, 5-year CAGR 6.49% 10.18% 6.93%
Net income growth, 5-year CAGR 12.38% 19.60% 0.00%

Health

Metric G PSN Information Technology Services median
Debt to equity 0.43 0.49 0.31
Current ratio 1.95 1.59 1.69
Net debt to EBITDA 0.40 1.43 0.55

Dividend

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

Size

Metric G PSN Information Technology Services median
Market cap 6.87b 5.31b 1.02b

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