Accenture vs Genpact Which Is More Profitable?

Accenture and Genpact are two prominent companies in the professional services industry, with a focus on technology and consulting services. Both companies have experienced steady growth in recent years, with Accenture being a larger and more established player in the market compared to Genpact. Despite this, Genpact has shown resilience and a strong performance in the stock market, making it a promising investment option for those looking to diversify their portfolio. In this comparison, we will analyze the performance and potential of Accenture and Genpact stocks to help investors make informed decisions.

Accenture or Genpact?

When comparing Accenture and Genpact, 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 Genpact.

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 1.89%, while Genpact has a dividend yield of 1.6%. 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, Genpact reports a 5-year dividend growth of 12.89% year and a payout ratio of 16.07%.

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 31.43 and Genpact's P/E ratio at 12.61. 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 8.07 while Genpact's P/B ratio is 3.49.

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 Genpact's is 0.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Accenture's ROE at 26.46% and Genpact's ROE at 28.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $356.95 for Accenture and $46.06 for Genpact. Over the past year, Accenture's prices ranged from $278.69 to $387.51, with a yearly change of 39.05%. Genpact's prices fluctuated between $30.23 and $47.98, with a yearly change of 58.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.