Infosys (NYSE:INFY) & Elcom International (OTCMKTS:ELCO) Head to Head Review

Infosys (NYSE:INFY) and Elcom International (OTCMKTS:ELCO) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Profitability

This table compares Infosys and Elcom International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Infosys 19.40% 27.75% 19.43%
Elcom International N/A N/A N/A

Institutional and Insider Ownership

16.1% of Infosys shares are held by institutional investors. 22.4% of Infosys shares are held by insiders. Comparatively, 13.6% of Elcom International 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Infosys and Elcom International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infosys 1 5 1 1 2.25
Elcom International 0 0 0 0 N/A

Infosys presently has a consensus price target of $20.16, indicating a potential downside of 9.07%. Given Infosys’ higher possible upside, equities analysts clearly believe Infosys is more favorable than Elcom International.

Volatility & Risk

Infosys has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Elcom International has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Earnings and Valuation

This table compares Infosys and Elcom International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Infosys $13.56 billion 6.93 $2.61 billion $0.61 36.33
Elcom International N/A N/A N/A N/A N/A

Infosys has higher revenue and earnings than Elcom International.

Summary

Infosys beats Elcom International on 10 of the 10 factors compared between the two stocks.

About Infosys

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom's PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.

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