Concentrix vs Accenture Which Should You Buy?

Concentrix and Accenture are two leading companies in the consulting and outsourcing industry, providing a range of services to clients worldwide. Both companies have a strong track record of success and growth, making them attractive options for investors looking to capitalize on the expanding global market for their services. While Concentrix has shown strong growth in recent years, Accenture has a larger market cap and a more diversified portfolio of services. Investors should carefully consider the financial performance and growth potential of both companies before making any investment decisions.

Concentrix or Accenture?

When comparing Concentrix 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 Concentrix 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. Concentrix has a dividend yield of 2.84%, while Accenture has a dividend yield of 1.49%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Concentrix reports a 5-year dividend growth of 0.00% year and a payout ratio of 39.89%. 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 Concentrix P/E ratio at 13.78 and Accenture's P/E ratio at 31.40. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Concentrix P/B ratio is 0.68 while Accenture's P/B ratio is 8.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Concentrix has seen a 5-year revenue growth of 1.77%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Concentrix's ROE at 4.97% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $42.33 for Concentrix and $355.40 for Accenture. Over the past year, Concentrix's prices ranged from $36.28 to $106.10, with a yearly change of 192.45%. 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.