CGI vs Accenture Which Performs Better?

CGI Inc. and Accenture are two prominent companies in the technology and consulting industry. Both CGI and Accenture have shown strong performance in the stock market, with both experiencing significant growth. CGI, a Canadian-based company, specializes in IT and business consulting services, while Accenture, an Irish-based company, offers a wide range of technology and outsourcing solutions. Investors interested in the technology sector may consider comparing the performance of CGI and Accenture stocks to make informed investment decisions.

CGI or Accenture?

When comparing CGI 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 CGI 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. CGI has a dividend yield of 0.07%, while Accenture has a dividend yield of 1.49%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CGI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 CGI P/E ratio at 22.10 and Accenture's P/E ratio at 31.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CGI P/B ratio is 4.15 while Accenture's P/B ratio is 8.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CGI has seen a 5-year revenue growth of 0.48%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CGI's ROE at 19.29% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.32 for CGI and $356.25 for Accenture. Over the past year, CGI's prices ranged from $96.92 to $118.89, with a yearly change of 22.67%. 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.