Accenture vs CGI Which Is Superior?

Accenture and CGI are two of the biggest players in the IT consulting and services industry, with both companies offering a range of solutions to clients worldwide. Accenture is known for its strong brand, global presence, and focus on digital transformation, while CGI is recognized for its expertise in IT outsourcing and systems integration. Both stocks have performed well in recent years, but each company has its own unique strengths and weaknesses that investors should consider before making a decision.

Accenture or CGI?

When comparing Accenture and CGI, 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 CGI.

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 CGI has a dividend yield of 0.07%. 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, CGI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 CGI's P/E ratio at 22.01. 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 CGI's P/B ratio is 4.13.

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 CGI's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Accenture's ROE at 26.46% and CGI's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $361.58 for Accenture and $112.47 for CGI. Over the past year, Accenture's prices ranged from $278.69 to $387.51, with a yearly change of 39.05%. CGI's prices fluctuated between $96.92 and $118.89, with a yearly change of 22.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.