Accenture vs Tech Mahindra Which Is More Profitable?

Accenture and Tech Mahindra are two prominent companies in the technology sector, each with a strong presence in the global market. Accenture is a leading professional services firm, offering a range of services including consulting, strategy, and digital solutions. Tech Mahindra, on the other hand, is a multinational technology company specializing in IT services and consulting. Both companies have shown consistent growth and profitability over the years, making them popular choices for investors seeking exposure to the tech industry.

Accenture or Tech Mahindra?

When comparing Accenture and Tech Mahindra, 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 Tech Mahindra.

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 Tech Mahindra has a dividend yield of 2.39%. 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, Tech Mahindra reports a 5-year dividend growth of 25.74% 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 31.27 and Tech Mahindra's P/E ratio at 48.59. 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 Tech Mahindra's P/B ratio is 6.01.

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 Tech Mahindra's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Accenture's ROE at 26.46% and Tech Mahindra's ROE at 12.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $356.25 for Accenture and ₹1761.00 for Tech Mahindra. Over the past year, Accenture's prices ranged from $278.69 to $387.51, with a yearly change of 39.05%. Tech Mahindra's prices fluctuated between ₹1162.95 and ₹1807.70, with a yearly change of 55.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.