Accenture vs Amdocs Which Is a Better Investment?

Accenture and Amdocs are two leading companies in the technology and consulting sector, with both offering innovative solutions to businesses around the world. Investors interested in these companies may be looking to capitalize on their growth potential and strong financial performance. Accenture has a proven track record of delivering high returns to shareholders, while Amdocs has also shown steady growth in recent years. By comparing their stocks, investors can make informed decisions about where to allocate their capital for maximum returns.

Accenture or Amdocs?

When comparing Accenture and Amdocs, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Accenture and Amdocs.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Accenture has a dividend yield of 1.48%, while Amdocs has a dividend yield of 2.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Accenture reports a 5-year dividend growth of 10.76% year and a payout ratio of 44.57%. On the other hand, Amdocs reports a 5-year dividend growth of 11.71% year and a payout ratio of 41.09%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Accenture P/E ratio at 31.62 and Amdocs's P/E ratio at 19.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Accenture P/B ratio is 8.12 while Amdocs's P/B ratio is 2.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Accenture has seen a 5-year revenue growth of 0.54%, while Amdocs's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Accenture's ROE at 26.46% and Amdocs's ROE at 14.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $361.58 for Accenture and $86.38 for Amdocs. Over the past year, Accenture's prices ranged from $278.69 to $387.51, with a yearly change of 39.05%. Amdocs's prices fluctuated between $74.41 and $94.04, with a yearly change of 26.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.