Persistent Systems vs Mphasis: Which Stock Should You Track

Persistent Systems vs Mphasis is a comparison mid-cap IT services investors look up when evaluating two software services companies. Persistent Systems is a Pune-based IT company known for its strong product engineering and digital transformation practice, while Mphasis is a Bengaluru-based company backed by Blackstone, primarily serving US financial services and technology clients.

This Persistent Systems vs Mphasis article covers reach and market position, key products, latest declared results and stock valuation. The Persistent Systems vs Mphasis data below is sourced from Groww and public company filings and reflects the most recently available information at the time of writing.

Persistent Systems vs Mphasis: Reach and Market Position

On the Persistent Systems side of the Persistent Systems vs Mphasis comparison, Persistent Systems serves clients in financial services, healthcare and technology with a focus on software product engineering, cloud and digital services. Market capitalisation is Rs 86,605 Cr.

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On the Mphasis side of the Persistent Systems vs Mphasis comparison, Mphasis serves clients primarily in US banking, financial services and insurance (BFSI) with application outsourcing, infrastructure services and cloud solutions. Blackstone holds a significant stake. Market capitalisation is Rs 46,135 Cr.

Persistent Systems vs Mphasis: Key Products and Business Mix

In the Persistent Systems vs Mphasis product comparison, Persistent Systems offers: Persistent Systems' services include software product development, application modernisation, data analytics, AI and cloud engineering. P/E is 45.03x, ROE 23.80 percent, debt to equity 0.06.

For Mphasis in this Persistent Systems vs Mphasis breakdown: Mphasis' services include BPO, application management, infrastructure and cloud services for US banking and insurance clients. P/E is 24.15x, ROE 17.34 percent, debt to equity 0.24.

Persistent Systems vs Mphasis: Latest Results

The Persistent Systems vs Mphasis results for Persistent Systems: Persistent Systems has a market cap of Rs 86,605 Cr and P/E of 45.03x. ROE is 23.80 percent. EPS is Rs 121.92 and dividend yield is 0.73 percent.

The Persistent Systems vs Mphasis results for Mphasis: Mphasis has a market cap of Rs 46,135 Cr and P/E of 24.15x. ROE is 17.34 percent. EPS is Rs 100.09 and dividend yield is 2.56 percent.

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Persistent Systems vs Mphasis: Stock and Valuation

The Persistent Systems vs Mphasis stock comparison uses the latest available market data from Groww. Investors tracking Persistent Systems vs Mphasis should verify current prices on NSE or BSE before trading.

Persistent Systems trades at a market cap of Rs 86,605 Cr and P/E of 45.03x with a higher ROE of 23.80 percent. Mphasis trades at Rs 46,135 Cr market cap and a notably cheaper P/E of 24.15x, with a higher dividend yield of 2.56 percent. Persistent's premium reflects its faster revenue growth trajectory, while Mphasis trades at a value in the mid-cap IT segment.

Persistent Systems vs Mphasis: Quick Comparison Table

The Persistent Systems vs Mphasis comparison table below summarises the key metrics covered in this article side by side.

Parameter	Persistent Systems	Mphasis
Sector	Mid-cap IT services: product engineering, cloud	Mid-cap IT services: BFSI outsourcing
Market Cap	Rs 86,605 Cr	Rs 46,135 Cr
P/E Ratio	45.03x	24.15x
ROE	23.80%	17.34%
Debt to Equity	0.06	0.24
Dividend Yield	0.73%	2.56%
Key sectors	Technology, BFSI, healthcare	BFSI (banking, financial services, insurance)
Backer	Promoter-managed (Anand Deshpande)	Blackstone (significant stake)

Conclusion

The Persistent Systems vs Mphasis comparison above covers the key data points on reach, products, results and valuation. Persistent Systems vs Mphasis are two mid-cap IT services companies at very different valuations. Persistent trades at a premium reflecting its faster growth and higher ROE, while Mphasis is cheaper and offers a higher dividend yield from its Blackstone-backed BFSI-focused model. Investors should review revenue growth trends and client concentration and consult a SEBI-registered advisor before investing.

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Frequently Asked Questions

What is the main difference between Persistent Systems and Mphasis?

Ans. Persistent Systems focuses on software product engineering, digital transformation and cloud for technology, BFSI and healthcare clients globally. Mphasis focuses on application and BPO services for US banking and financial services clients.

Which company has the higher ROE?

Ans. Persistent Systems has an ROE of 23.80 percent, higher than Mphasis at 17.34 percent.

Which stock trades at a lower P/E?

Ans. Mphasis trades at 24.15x trailing earnings, significantly cheaper than Persistent Systems at 45.03x.

Which stock pays a higher dividend?

Ans. Mphasis pays a dividend yield of 2.56 percent, higher than Persistent Systems at 0.73 percent.

Is Mphasis owned by Blackstone?

Ans. Blackstone holds a significant stake in Mphasis, acquired through its acquisition of a controlling stake from HP Inc. in 2016.

What risks apply to mid-cap IT services?

Ans. Both companies face risk from client spending cuts, currency movements, attrition and competition from larger IT peers.

Should I invest in Persistent Systems or Mphasis?

Ans. This depends on your preference between premium growth exposure versus value with higher dividends. Review revenue growth rates and consult a SEBI-registered advisor before investing.