IGATE Corp (NASDAQ: IGTE) and CSRA (NYSE:CSRA) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitabiliy and institutional ownership.

Dividends

CSRA pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. IGATE Corp does not pay a dividend. CSRA pays out 21.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for IGATE Corp and CSRA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IGATE Corp 0 0 0 0 N/A
CSRA 0 2 5 0 2.71

CSRA has a consensus price target of $35.00, indicating a potential upside of 8.73%. Given CSRA’s higher probable upside, analysts plainly believe CSRA is more favorable than IGATE Corp.

Institutional & Insider Ownership

93.8% of CSRA shares are owned by institutional investors. 0.4% of CSRA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares IGATE Corp and CSRA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IGATE Corp 11.84% 28.23% 10.83%
CSRA 6.09% 128.47% 6.93%

Earnings and Valuation

This table compares IGATE Corp and CSRA’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IGATE Corp N/A N/A N/A N/A N/A
CSRA $4.99 billion 1.05 $938.00 million $1.83 17.59

CSRA has higher revenue and earnings than IGATE Corp.

Summary

CSRA beats IGATE Corp on 7 of the 10 factors compared between the two stocks.

About IGATE Corp

IGATE Corporation provides integrated technology and operations-based information technology solutions. The Company delivers a range of solutions and services across multiple domains and industries, including healthcare, life sciences, insurance, manufacturing, banking, financial services, business administrative services, data management services, product and engineering solutions, retail, consumer packaged goods, communications, energy, utility, media and entertainment.. It is an integrated technology and operations (ITOPS) company. The Company’s services include application development, application maintenance, business intelligence and analytics, cloud services, engineering design services, enterprise application solutions, enterprise mobility, infrastructure management services, product and engineering solutions embedded systems, product verification and validation, verification and validation and business process outsourcing (BPO).

About CSRA

CSRA Inc. is a provider of information technology services to the United States federal government. The Company operates through two segments: Defense and Intelligence, and Civil. The Defense and Intelligence segment provides services to the Department of Defense (DoD), National Security Agency, branches of the Armed Forces, and other DoD and Intelligence agencies. The Civil segment provides services to various federal agencies within the Department of Homeland Security (the DHS), Department of Health and Human services, and other federal civil agencies, as well as various state and local government agencies. It supplies civil government agencies with mission information systems and associated technical support services. It provides its customers with technical services across service areas, including Digital Services, Enterprise Business Services, Digital Platforms, Cyber, Data Science, and Professional and Citizen Services. It has conducted operations in over 130 locations.

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