Tech Mahindra vs Accenture

Tech Mahindra and Accenture are two major players in the technology consulting and services industry. Both companies have a global presence and offer a wide range of services to clients across various sectors. While Tech Mahindra is an India-based company with a strong focus on telecommunications and IT services, Accenture is a multinational corporation known for its expertise in management consulting, technology, and outsourcing services. Investors looking to invest in these stocks should consider factors such as revenue growth, profitability, and market trends to make an informed decision.

Tech Mahindra or Accenture?

When comparing Tech Mahindra 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 Tech Mahindra 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. Tech Mahindra has a dividend yield of 2.39%, while Accenture has a dividend yield of 1.85%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tech Mahindra reports a 5-year dividend growth of 25.74% 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 Tech Mahindra P/E ratio at 58.82 and Accenture's P/E ratio at 32.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Tech Mahindra P/B ratio is 5.45 while Accenture's P/B ratio is 8.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Tech Mahindra has seen a 5-year revenue growth of 0.50%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tech Mahindra's ROE at 9.40% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1663.50 for Tech Mahindra and $365.43 for Accenture. Over the past year, Tech Mahindra's prices ranged from ₹1098.15 to ₹1703.45, with a yearly change of 55.12%. 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.