Amdocs vs Accenture Which Is More Favorable?

Amdocs and Accenture are two leading companies in the technology sector, with a focus on providing services and solutions to a wide range of industries. Both companies have seen significant growth in their stock prices in recent years, but there are key differences between the two. Amdocs is a global leader in software and services for communications and media companies, while Accenture is a consulting and technology services firm. Investors should carefully consider the strengths and weaknesses of each company before making investment decisions.

Amdocs or Accenture?

When comparing Amdocs and Accenture, 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 Amdocs and Accenture.

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. Amdocs has a dividend yield of 2.02%, while Accenture has a dividend yield of 1.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amdocs reports a 5-year dividend growth of 11.71% year and a payout ratio of 41.09%. On the other hand, Accenture reports a 5-year dividend growth of 10.76% year and a payout ratio of 44.57%.

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 Amdocs P/E ratio at 20.95 and Accenture's P/E ratio at 31.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amdocs P/B ratio is 3.04 while Accenture's P/B ratio is 8.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amdocs has seen a 5-year revenue growth of 0.49%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amdocs's ROE at 14.40% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.45 for Amdocs and $356.95 for Accenture. Over the past year, Amdocs's prices ranged from $74.41 to $94.04, with a yearly change of 26.38%. Accenture's prices fluctuated between $278.69 and $387.51, with a yearly change of 39.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.