Seek Returns logo

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

Updated on

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

Company Profile

INFY trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, ORCL is a standard domestic listing.

SymbolINFYORCL
Company NameInfosys LimitedOracle Corporation
CountryIndiaUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesSoftware
Market Capitalization69.83 billion USD822.82 billion USD
ExchangeNYSENYSE
Listing DateMarch 11, 1999March 12, 1986
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of INFY and ORCL 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.

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

Historical Performance at a Glance

SymbolINFYORCL
5-Day Price Return3.25%-0.05%
13-Week Price Return-8.11%22.40%
26-Week Price Return-2.30%110.33%
52-Week Price Return-22.22%69.81%
Month-to-Date Return3.63%2.63%
Year-to-Date Return-20.72%73.21%
10-Day Avg. Volume6.91M23.30M
3-Month Avg. Volume7.59M19.31M
3-Month Volatility22.96%81.79%
Beta0.901.65

Profitability

Return on Equity (TTM)

INFY

29.51%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

In the upper quartile for the IT Services industry, INFY’s Return on Equity of 29.51% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ORCL

66.28%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

In the upper quartile for the Software industry, ORCL’s Return on Equity of 66.28% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

INFY vs. ORCL: A comparison of their Return on Equity (TTM) against their respective IT Services and Software industry benchmarks.

Net Profit Margin (TTM)

INFY

16.43%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

A Net Profit Margin of 16.43% places INFY in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.

ORCL

21.08%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

A Net Profit Margin of 21.08% places ORCL in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

INFY vs. ORCL: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Software industry benchmarks.

Operating Profit Margin (TTM)

INFY

21.05%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

An Operating Profit Margin of 21.05% places INFY in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ORCL

30.44%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

An Operating Profit Margin of 30.44% places ORCL in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

INFY vs. ORCL: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Software industry benchmarks.

Profitability at a Glance

SymbolINFYORCL
Return on Equity (TTM)29.51%66.28%
Return on Assets (TTM)18.81%7.56%
Net Profit Margin (TTM)16.43%21.08%
Operating Profit Margin (TTM)21.05%30.44%
Gross Profit Margin (TTM)30.47%69.66%

Financial Strength

Current Ratio (MRQ)

INFY

2.18

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

INFY’s Current Ratio of 2.18 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ORCL

0.62

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

ORCL’s Current Ratio of 0.62 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

INFY vs. ORCL: A comparison of their Current Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

INFY

0.09

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

Falling into the lower quartile for the IT Services industry, INFY’s Debt-to-Equity Ratio of 0.09 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ORCL

3.78

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

With a Debt-to-Equity Ratio of 3.78, ORCL operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

INFY vs. ORCL: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Interest Coverage Ratio (TTM)

INFY

--

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

Interest Coverage Ratio data for INFY is currently unavailable.

ORCL

4.92

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

ORCL’s Interest Coverage Ratio of 4.92 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

INFY vs. ORCL: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Financial Strength at a Glance

SymbolINFYORCL
Current Ratio (MRQ)2.180.62
Quick Ratio (MRQ)2.110.50
Debt-to-Equity Ratio (MRQ)0.093.78
Interest Coverage Ratio (TTM)--4.92

Growth

Revenue Growth

INFY vs. ORCL: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

INFY vs. ORCL: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

INFY

4.86%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

INFY’s Dividend Yield of 4.86% is exceptionally high, placing it well above the typical range for the IT 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.

ORCL

0.62%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

ORCL’s Dividend Yield of 0.62% is exceptionally high, placing it well above the typical range for the Software 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.

INFY vs. ORCL: A comparison of their Dividend Yield (TTM) against their respective IT Services and Software industry benchmarks.

Dividend Payout Ratio (TTM)

INFY

107.85%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
Q1
0.00%
Min
0.00%

INFY’s Dividend Payout Ratio of 107.85% is in the upper quartile for the IT 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.

ORCL

40.62%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

At 40.62%, ORCL’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

INFY vs. ORCL: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Dividend at a Glance

SymbolINFYORCL
Dividend Yield (TTM)4.86%0.62%
Dividend Payout Ratio (TTM)107.85%40.62%

Valuation

Price-to-Earnings Ratio (TTM)

INFY

22.19

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

INFY’s P/E Ratio of 22.19 is within the middle range for the IT 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.

ORCL

65.29

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

ORCL’s P/E Ratio of 65.29 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

INFY vs. ORCL: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

INFY

3.65

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

INFY’s P/S Ratio of 3.65 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ORCL

13.76

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

ORCL’s P/S Ratio of 13.76 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

INFY vs. ORCL: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

INFY

6.99

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

INFY’s P/B Ratio of 6.99 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ORCL

26.30

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

ORCL’s P/B Ratio of 26.30 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

INFY vs. ORCL: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Valuation at a Glance

SymbolINFYORCL
Price-to-Earnings Ratio (TTM)22.1965.29
Price-to-Sales Ratio (TTM)3.6513.76
Price-to-Book Ratio (MRQ)6.9926.30
Price-to-Free Cash Flow Ratio (TTM)19.0095.82