Accenture vs Microsoft

Accenture and Microsoft are two of the biggest players in the technology and consulting industries, making them exciting options for investors. While both companies have performed well in recent years, their stocks have seen varying levels of growth and stability. Accenture's focus on consulting services has led to steady growth, while Microsoft's diverse portfolio of products and services, including cloud computing and software solutions, has driven strong performance. Investors looking to capitalize on the tech sector may find both stocks appealing options for their portfolios.

Accenture or Microsoft?

When comparing Accenture and Microsoft, 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 Microsoft.

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 Microsoft has a dividend yield of 0.72%. 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, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.70%.

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 Microsoft's P/E ratio at 35.31. 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 Microsoft's P/B ratio is 11.59.

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 Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Accenture's ROE at 26.46% and Microsoft's ROE at 35.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $365.43 for Accenture and $415.26 for Microsoft. Over the past year, Accenture's prices ranged from $278.69 to $387.51, with a yearly change of 39.05%. Microsoft's prices fluctuated between $324.39 and $468.35, with a yearly change of 44.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.