Seek Returns logo

ALAB vs. INFY: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ALAB and INFY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

INFY’s market capitalization of 78.58 billion USD is significantly greater than ALAB’s 14.97 billion USD, highlighting its more substantial market valuation.

ALAB’s beta of 1.40 points to significantly higher volatility compared to INFY (beta: 0.53), suggesting ALAB has greater potential for both gains and losses relative to market movements.

INFY is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ALAB, on the other hand, is a domestic entity.

SymbolALABINFY
Company NameAstera Labs, Inc. Common StockInfosys Limited
CountryUSIN
SectorTechnologyTechnology
IndustrySemiconductorsInformation Technology Services
CEOJitendra MohanSalil Satish Parekh
Price90.8 USD18.96 USD
Market Cap14.97 billion USD78.58 billion USD
Beta1.400.53
ExchangeNASDAQNYSE
IPO DateMarch 20, 2024March 11, 1999
ADRNoYes

Historical Performance

This chart compares the performance of ALAB and INFY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ALAB vs. INFY: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ALAB

4.43%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

ALAB’s Return on Equity of 4.43% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

INFY

29.88%

Information Technology Services Industry

Max
47.24%
Q3
23.27%
Median
12.85%
Q1
2.22%
Min
-26.63%

In the upper quartile for the Information Technology Services industry, INFY’s Return on Equity of 29.88% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ALAB vs. INFY: A comparison of their ROE against their respective Semiconductors and Information Technology Services industry benchmarks.

Return on Invested Capital

ALAB

-4.25%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

ALAB has a negative Return on Invested Capital of -4.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

INFY

23.33%

Information Technology Services Industry

Max
28.29%
Q3
13.19%
Median
7.24%
Q1
0.23%
Min
-18.82%

In the upper quartile for the Information Technology Services industry, INFY’s Return on Invested Capital of 23.33% signifies a highly effective use of its capital to generate profits when compared to its peers.

ALAB vs. INFY: A comparison of their ROIC against their respective Semiconductors and Information Technology Services industry benchmarks.

Net Profit Margin

ALAB

8.44%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

ALAB’s Net Profit Margin of 8.44% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

INFY

16.38%

Information Technology Services Industry

Max
20.47%
Q3
11.62%
Median
5.97%
Q1
1.89%
Min
-4.62%

A Net Profit Margin of 16.38% places INFY in the upper quartile for the Information Technology Services industry, signifying strong profitability and more effective cost management than most of its peers.

ALAB vs. INFY: A comparison of their Net Profit Margin against their respective Semiconductors and Information Technology Services industry benchmarks.

Operating Profit Margin

ALAB

-4.45%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

ALAB has a negative Operating Profit Margin of -4.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

INFY

21.12%

Information Technology Services Industry

Max
29.42%
Q3
14.75%
Median
8.92%
Q1
2.62%
Min
-11.92%

An Operating Profit Margin of 21.12% places INFY in the upper quartile for the Information Technology Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ALAB vs. INFY: A comparison of their Operating Margin against their respective Semiconductors and Information Technology Services industry benchmarks.

Profitability at a Glance

SymbolALABINFY
Return on Equity (TTM)4.43%29.88%
Return on Assets (TTM)3.69%18.12%
Return on Invested Capital (TTM)-4.25%23.33%
Net Profit Margin (TTM)8.44%16.38%
Operating Profit Margin (TTM)-4.45%21.12%
Gross Profit Margin (TTM)75.76%30.46%

Financial Strength

Current Ratio

ALAB

13.92

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

ALAB’s Current Ratio of 13.92 is exceptionally high, placing it well outside the typical range for the Semiconductors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

INFY

2.27

Information Technology Services Industry

Max
3.41
Q3
2.37
Median
1.58
Q1
1.20
Min
0.00

INFY’s Current Ratio of 2.27 aligns with the median group of the Information Technology Services industry, indicating that its short-term liquidity is in line with its sector peers.

ALAB vs. INFY: A comparison of their Current Ratio against their respective Semiconductors and Information Technology Services industry benchmarks.

Debt-to-Equity Ratio

ALAB

--

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

Debt-to-Equity Ratio data for ALAB is currently unavailable.

INFY

0.06

Information Technology Services Industry

Max
2.63
Q3
1.16
Median
0.48
Q1
0.09
Min
0.01

Falling into the lower quartile for the Information Technology Services industry, INFY’s Debt-to-Equity Ratio of 0.06 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ALAB vs. INFY: A comparison of their D/E Ratio against their respective Semiconductors and Information Technology Services industry benchmarks.

Interest Coverage Ratio

ALAB

--

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

Interest Coverage Ratio data for ALAB is currently unavailable.

INFY

--

Information Technology Services Industry

Max
17.52
Q3
10.04
Median
4.66
Q1
0.80
Min
-10.50

Interest Coverage Ratio data for INFY is currently unavailable.

ALAB vs. INFY: A comparison of their Interest Coverage against their respective Semiconductors and Information Technology Services industry benchmarks.

Financial Strength at a Glance

SymbolALABINFY
Current Ratio (TTM)13.922.27
Quick Ratio (TTM)13.262.27
Debt-to-Equity Ratio (TTM)--0.06
Debt-to-Asset Ratio (TTM)--0.04
Net Debt-to-EBITDA Ratio (TTM)4.76-0.53
Interest Coverage Ratio (TTM)----

Growth

The following charts compare key year-over-year (YoY) growth metrics for ALAB and INFY. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ALAB vs. INFY: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ALAB vs. INFY: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ALAB vs. INFY: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ALAB

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

INFY

226.99%

Information Technology Services Industry

Max
16.57%
Q3
1.39%
Median
0.00%
Q1
0.00%
Min
0.00%

INFY’s Dividend Yield of 226.99% is exceptionally high, placing it well above the typical range for the Information Technology Services industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

ALAB vs. INFY: A comparison of their Dividend Yield against their respective Semiconductors and Information Technology Services industry benchmarks.

Dividend Payout Ratio

ALAB

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

INFY

76.53%

Information Technology Services Industry

Max
112.81%
Q3
20.98%
Median
0.00%
Q1
0.00%
Min
0.00%

INFY’s Dividend Payout Ratio of 76.53% is in the upper quartile for the Information Technology Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ALAB vs. INFY: A comparison of their Payout Ratio against their respective Semiconductors and Information Technology Services industry benchmarks.

Dividend at a Glance

SymbolALABINFY
Dividend Yield (TTM)0.00%226.99%
Dividend Payout Ratio (TTM)0.00%76.53%

Valuation

Price-to-Earnings Ratio

ALAB

357.98

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 357.98, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

INFY

24.71

Information Technology Services Industry

Max
49.12
Q3
36.91
Median
24.84
Q1
15.88
Min
1.55

INFY’s P/E Ratio of 24.71 is within the middle range for the Information Technology Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ALAB vs. INFY: A comparison of their P/E Ratio against their respective Semiconductors and Information Technology Services industry benchmarks.

Forward P/E to Growth Ratio

ALAB

10.80

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

INFY

2.62

Information Technology Services Industry

Max
5.35
Q3
3.79
Median
2.23
Q1
1.19
Min
0.03

INFY’s Forward PEG Ratio of 2.62 is within the middle range of its peers in the Information Technology Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ALAB vs. INFY: A comparison of their Forward PEG Ratio against their respective Semiconductors and Information Technology Services industry benchmarks.

Price-to-Sales Ratio

ALAB

30.53

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 30.53, ALAB trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

INFY

4.14

Information Technology Services Industry

Max
8.15
Q3
4.17
Median
2.14
Q1
1.00
Min
0.10

INFY’s P/S Ratio of 4.14 aligns with the market consensus for the Information Technology Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ALAB vs. INFY: A comparison of their P/S Ratio against their respective Semiconductors and Information Technology Services industry benchmarks.

Price-to-Book Ratio

ALAB

14.23

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 14.23, ALAB’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

INFY

6.96

Information Technology Services Industry

Max
11.78
Q3
6.14
Median
3.23
Q1
1.97
Min
0.42

The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.

ALAB vs. INFY: A comparison of their P/B Ratio against their respective Semiconductors and Information Technology Services industry benchmarks.

Valuation at a Glance

SymbolALABINFY
Price-to-Earnings Ratio (P/E, TTM)357.9824.71
Forward PEG Ratio (TTM)10.802.62
Price-to-Sales Ratio (P/S, TTM)30.534.14
Price-to-Book Ratio (P/B, TTM)14.236.96
Price-to-Free Cash Flow Ratio (P/FCF, TTM)138.4424.94
EV-to-EBITDA (TTM)-820.3218.64
EV-to-Sales (TTM)30.354.02