Mphasis vs Accenture Which Is Superior?

Mphasis and Accenture are two prominent players in the IT services industry, both offering a wide range of solutions to clients worldwide. While Accenture is a global leader with a strong reputation and a more diversified portfolio of services, Mphasis has been gaining traction in recent years with its focus on niche markets and strong client relationships. Investors looking to bet on the IT services sector may find opportunities in both companies' stocks, each with its own unique strengths and growth prospects.

Mphasis or Accenture?

When comparing Mphasis 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 Mphasis 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. Mphasis has a dividend yield of 1.92%, while Accenture has a dividend yield of 1.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mphasis reports a 5-year dividend growth of 20.11% year and a payout ratio of 59.13%. 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 Mphasis P/E ratio at 33.94 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. Mphasis P/B ratio is 6.24 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, Mphasis has seen a 5-year revenue growth of 0.74%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mphasis's ROE at 18.43% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2819.60 for Mphasis and $354.10 for Accenture. Over the past year, Mphasis's prices ranged from ₹2144.10 to ₹3187.80, with a yearly change of 48.68%. 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.