Thoughtworks vs Accenture Which Is a Better Investment?

Thoughtworks and Accenture are two major players in the technology consulting and services industry. Both companies offer a wide range of services including digital transformation, cloud computing, and data analytics. While Thoughtworks is a younger and more specialized company known for its agile and innovative approach, Accenture is a larger and more established firm with a global presence. Investors may consider factors such as growth potential, market share, and financial stability when comparing the stocks of these two companies.

Thoughtworks or Accenture?

When comparing Thoughtworks 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 Thoughtworks 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. Thoughtworks has a dividend yield of -%, while Accenture has a dividend yield of 1.49%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Thoughtworks 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 Thoughtworks P/E ratio at -12.48 and Accenture's P/E ratio at 31.40. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Thoughtworks P/B ratio is 1.98 while Accenture's P/B ratio is 8.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Thoughtworks has seen a 5-year revenue growth of 0.40%, while Accenture's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Thoughtworks's ROE at -15.25% and Accenture's ROE at 26.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.47 for Thoughtworks and $355.40 for Accenture. Over the past year, Thoughtworks's prices ranged from $2.19 to $5.20, with a yearly change of 137.44%. 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.