Infosys (NYSE: INFY) and Professional Diversity Network (NASDAQ:IPDN) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Risk & Volatility
Infosys has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 3.18, meaning that its stock price is 218% more volatile than the S&P 500.
Insider & Institutional Ownership
18.9% of Infosys shares are held by institutional investors. Comparatively, 4.7% of Professional Diversity Network shares are held by institutional investors. 22.4% of Infosys shares are held by insiders. Comparatively, 19.0% of Professional Diversity Network shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Infosys pays an annual dividend of $0.39 per share and has a dividend yield of 2.3%. Professional Diversity Network does not pay a dividend. Infosys pays out 40.2% of its earnings in the form of a dividend. Infosys has raised its dividend for 5 consecutive years.
Earnings and Valuation
This table compares Infosys and Professional Diversity Network’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Infosys||$10.21 billion||3.76||$2.14 billion||$0.97||17.33|
|Professional Diversity Network||$26.23 million||0.61||-$4.10 million||($4.54)||-0.90|
Infosys has higher revenue and earnings than Professional Diversity Network. Professional Diversity Network is trading at a lower price-to-earnings ratio than Infosys, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Infosys and Professional Diversity Network, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Professional Diversity Network||0||0||0||0||N/A|
Infosys currently has a consensus price target of $14.90, indicating a potential downside of 11.38%. Given Infosys’ higher possible upside, analysts clearly believe Infosys is more favorable than Professional Diversity Network.
This table compares Infosys and Professional Diversity Network’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Professional Diversity Network||-86.95%||-37.27%||-25.12%|
Infosys beats Professional Diversity Network on 14 of the 16 factors compared between the two stocks.
Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services. The Company, along with its subsidiaries, provides business information technology services comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation. Its segments are Financial Services and Insurance (FSI), Manufacturing and Hi-tech (MFG & Hi-TECH), Energy & utilities, Communication and Services (ECS), Retail, Consumer packaged goods and Logistics (RCL), and Life Sciences and Healthcare (LSH).
About Professional Diversity Network
Professional Diversity Network, Inc. is an operator of professional networks with a focus on diversity. The Company serves various communities, including Women, Hispanic-Americans, African-Americans, Asian-Americans, Disabled, Military Professionals, and Lesbian, Gay, Bisexual and Transgender (LGBT). The Company’s segments include Professional Diversity Network (PDN Network), which includes online professional networking communities with career resources for the needs of various diverse cultural groups; National Association of Professional Women (NAPW Network), a women-only professional networking organization, and Noble Voice operations (Noble Voice), a career consultation and lead generation service. The Noble Voice call centers qualify callers for real-time job placement. The PDN Network consists of various online professional networking communities dedicated to serving diverse professionals in the United States and employers seeking to hire diverse talent.
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