Accenture vs Mastek

Accenture and Mastek are two leading companies in the technology and consulting services industry. Accenture, a global powerhouse, provides a wide range of services to clients worldwide, while Mastek, a smaller player, focuses primarily on digital transformation solutions. Both companies have experienced strong growth in recent years, but their stocks have performed differently in the market. Investors looking to invest in the technology sector may find it beneficial to analyze and compare the performance of Accenture and Mastek stocks before making investment decisions.

Accenture or Mastek?

When comparing Accenture and Mastek, 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 Mastek.

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 1.85%, while Mastek has a dividend yield of 0.65%. 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, Mastek reports a 5-year dividend growth of 20.43% 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 32.14 and Mastek's P/E ratio at 29.73. 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 8.25 while Mastek's P/B ratio is 4.27.

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 Mastek's is 1.87%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Accenture's ROE at 26.46% and Mastek's ROE at 15.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $365.43 for Accenture and ₹2755.00 for Mastek. Over the past year, Accenture's prices ranged from $278.69 to $387.51, with a yearly change of 39.05%. Mastek's prices fluctuated between ₹2103.05 and ₹3145.00, with a yearly change of 49.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.