Globant vs Accenture Which Should You Buy?

Globant and Accenture are two leading companies in the IT services and consulting industry. Both firms have experienced significant growth and success over the past few years, with their stocks being of great interest to investors. Globant, a technology services company based in Argentina, specializes in digital and cognitive transformation, while Accenture, a multinational professional services company, offers a range of services including strategy, consulting, digital, technology, and operations. Investors closely monitor the stocks of these companies to assess their performance and potential for future growth.

Globant or Accenture?

When comparing Globant 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 Globant 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. Globant has a dividend yield of -%, while Accenture has a dividend yield of 1.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Globant 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 Globant P/E ratio at 59.85 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. Globant P/B ratio is 5.68 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, Globant has seen a 5-year revenue growth of 2.37%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Globant's ROE at 9.73% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $230.71 for Globant and $354.10 for Accenture. Over the past year, Globant's prices ranged from $151.68 to $251.50, with a yearly change of 65.81%. 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.