Nagarro vs Accenture Which Offers More Value?

Nagarro and Accenture are two prominent companies in the IT consulting and services industry. Nagarro, a relatively smaller player, specializes in providing innovative IT solutions to clients across various sectors, while Accenture, a global giant, offers a wide range of services including consulting, technology, and outsourcing. Both companies have shown strong performance in the stock market, but their strategies, market positions, and growth prospects differ. Investors should carefully analyze these factors before deciding where to invest in Nagarro or Accenture stocks.

Nagarro or Accenture?

When comparing Nagarro 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 Nagarro 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. Nagarro has a dividend yield of 2.17%, while Accenture has a dividend yield of 1.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nagarro 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 Nagarro P/E ratio at 21.81 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. Nagarro P/B ratio is 5.38 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, Nagarro has seen a 5-year revenue growth of 1.65%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nagarro's ROE at 27.55% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $94.48 for Nagarro and $354.10 for Accenture. Over the past year, Nagarro's prices ranged from $71.86 to $106.00, with a yearly change of 47.51%. 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.