Brady (NYSE: BRC) and Genpact (NYSE:G) are both mid-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Earnings & Valuation
This table compares Brady and Genpact’s gross revenue, earnings per share and valuation.
||Earnings Per Share
Genpact has higher revenue and earnings than Brady. Brady is trading at a lower price-to-earnings ratio than Genpact, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Brady and Genpact, as reported by MarketBeat.com.
||Strong Buy Ratings
Brady currently has a consensus price target of $40.50, indicating a potential upside of 3.98%. Genpact has a consensus price target of $33.14, indicating a potential upside of 0.07%. Given Brady’s higher possible upside, equities analysts plainly believe Brady is more favorable than Genpact.
Brady pays an annual dividend of $0.83 per share and has a dividend yield of 2.1%. Genpact pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Brady pays out 43.9% of its earnings in the form of a dividend. Genpact pays out 17.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Genpact has raised its dividend for 32 consecutive years.
Insider & Institutional Ownership
76.8% of Brady shares are held by institutional investors. Comparatively, 91.2% of Genpact shares are held by institutional investors. 15.6% of Brady shares are held by insiders. Comparatively, 1.4% of Genpact shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Brady and Genpact’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility and Risk
Brady has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Genpact has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Genpact beats Brady on 11 of the 17 factors compared between the two stocks.
Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.
Genpact Limited is engaged in providing digitally powered business process management and services. The Company is also engaged in designing, transforming and running a combination of processes, as well as providing solutions that combine elements of its service offerings. The Company’s segments include Business process outsourcing and Information technology services. The Company offers various vertical activities, which include banking and financial services, capital markets, consumer product goods services, healthcare, infrastructure and manufacturing services, insurance and life sciences. In addition to these vertical activities, it also offers analytics and research, collections and customer services, consulting and transformation services, core industry operations services, enterprise application services, finance and accounting (F&A) services, information technology (IT) infrastructure management services, and supply chain and procurement services.
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