TruBridge (NASDAQ:TBRG) versus Infosys (NYSE:INFY) Critical Analysis

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Infosys and TruBridge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Infosys	2	3	5	1	2.45
TruBridge	0	2	2	0	2.50

Infosys currently has a consensus target price of $20.85, indicating a potential downside of 7.87%. TruBridge has a consensus target price of $14.50, indicating a potential downside of 29.82%. Given Infosys’ higher possible upside, research analysts clearly believe Infosys is more favorable than TruBridge.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Infosys	17.15%	31.43%	19.49%
TruBridge	-17.72%	1.78%	0.78%

Risk & Volatility

Infosys has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, TruBridge has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Valuation and Earnings

This table compares Infosys and TruBridge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Infosys	$18.84 billion	4.98	$3.17 billion	$0.78	29.01
TruBridge	$337.67 million	0.91	-$44.76 million	($4.09)	-5.05

Infosys has higher revenue and earnings than TruBridge. TruBridge is trading at a lower price-to-earnings ratio than Infosys, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

16.2% of Infosys shares are held by institutional investors. Comparatively, 88.6% of TruBridge shares are held by institutional investors. 22.4% of Infosys shares are held by insiders. Comparatively, 3.6% of TruBridge shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Infosys beats TruBridge on 13 of the 15 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, and 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, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

About TruBridge

TruBridge, Inc. provides healthcare solutions and services for community hospitals, clinics, and other healthcare systems in the United States and internationally. The company operates in three segments: Revenue Cycle Management (RCM), Electronic Health Record (HER), and Patient Engagement. It focuses on providing RCM solutions for care settings, regardless of primary healthcare information solutions provider along with business management, consulting, managed IT services, and analytics and business intelligence. The company provides acute care solutions and related services for community hospitals, and physician clinics; and patient engagement and empowerment technology solutions to improve patient outcomes and engagement strategies with care providers. In addition, it offers patient liability estimates eligibility verification, claim scrubbing and submission, remittance management, denial/audit management, and contract management; and offers RCM services, such as accounts receivable management, private pay service, medical coding, revenue cycle consulting, and other additional insurance and patient billing services. Further, it offers consulting and business management services; managed IT services; encoder solutions; patient management; financial accounting; clinical; patient care; and enterprise applications. Additionally, it offers TruBridge HER platform, including total system support, national client conference, continuing education, software releases, hardware replacement, cloud electronic health record, forms and supplies, and public cloud infrastructure services; post-acute care software systems, and support and maintenance services; and InstantPHR, an interactive portal and CHBase which funnels data from multiple sources into one platform. The company was formerly known as Computer Programs and Systems, Inc. and changed its name to TruBridge, Inc. in March 2024. TruBridge, Inc. was founded in 1979 and is headquartered in Mobile, Alabama.