Accenture vs Sopra Steria Which Offers More Value?

Accenture and Sopra Steria are two leading companies in the IT consulting and technology services industry. Accenture, a global powerhouse, is known for its innovative solutions and strong financial performance. On the other hand, Sopra Steria, a European player, has been gaining traction with its digital transformation services. Investors may consider factors such as revenue growth, market share, and geographical diversification when comparing the two stocks. Overall, both companies offer potential opportunities for growth and returns in the competitive IT services sector.

Accenture or Sopra Steria?

When comparing Accenture and Sopra Steria, 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 Sopra Steria.

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 1.49%, while Sopra Steria has a dividend yield of 2.76%. 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, Sopra Steria reports a 5-year dividend growth of 12.37% year and a payout ratio of 48.30%.

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 31.27 and Sopra Steria's P/E ratio at 17.47. 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 8.03 while Sopra Steria's P/B ratio is 1.74.

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 Sopra Steria's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Accenture's ROE at 26.46% and Sopra Steria's ROE at 10.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $356.25 for Accenture and €165.80 for Sopra Steria. Over the past year, Accenture's prices ranged from $278.69 to $387.51, with a yearly change of 39.05%. Sopra Steria's prices fluctuated between €159.50 and €239.60, with a yearly change of 50.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.