Genpact vs Accenture Which Is More Profitable?

Genpact and Accenture are both multinational professional services companies with a strong presence in the technology and business process outsourcing industries. Investors may find themselves comparing their stocks to decide which offers better investment opportunities. Genpact has shown steady growth in recent years, while Accenture has a larger market cap and a more diverse range of services. Understanding the differences in their financial performance, market positioning, and growth prospects can help investors make informed decisions on investing in Genpact vs Accenture stocks.

Genpact or Accenture?

When comparing Genpact 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 Genpact 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. Genpact has a dividend yield of 1.6%, while Accenture has a dividend yield of 1.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Genpact reports a 5-year dividend growth of 12.89% year and a payout ratio of 16.07%. 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 Genpact P/E ratio at 12.61 and Accenture's P/E ratio at 31.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Genpact P/B ratio is 3.49 while Accenture's P/B ratio is 8.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Genpact has seen a 5-year revenue growth of 0.56%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Genpact's ROE at 28.58% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.77 for Genpact and $354.10 for Accenture. Over the past year, Genpact's prices ranged from $30.23 to $47.98, with a yearly change of 58.72%. 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.