In the fast-paced world of technology services, two companies stand out: Accenture plc (ACN) and Genpact Limited (G). Both operate within the Information Technology Services sector, offering innovative solutions that cater to various industries. While Accenture focuses on comprehensive strategy consulting and operations, Genpact emphasizes business process outsourcing and digital transformation. In this article, I will analyze these two firms to help you identify which one might be the more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Accenture plc Overview
Accenture plc (ACN) is a leading global professional services company that specializes in strategy, consulting, digital transformation, technology, and operations. Founded in 1951 and headquartered in Dublin, Ireland, Accenture serves clients in more than 120 countries. The company focuses on delivering innovative solutions across various industries, leveraging its expertise in artificial intelligence, cloud computing, and cybersecurity. With a market capitalization of approximately $156.2B, Accenture remains at the forefront of digital transformation, helping organizations navigate complex challenges and enhance their operational efficiencies.
Genpact Limited Overview
Genpact Limited (G), established in 1997 and based in Hamilton, Bermuda, is a prominent provider of business process outsourcing and IT services. With a market cap of around $7.7B, Genpact serves clients across multiple sectors, including banking, consumer goods, and high-tech industries. The company’s offerings range from finance and accounting services to supply chain advisory and ESG consulting. By integrating advanced analytics and digital technologies, Genpact aids businesses in optimizing their operations and achieving sustainable growth in a rapidly changing economic landscape.
Key similarities and differences
Both Accenture and Genpact operate within the information technology services sector, focusing on consulting and operational efficiency. However, Accenture offers a broader range of services, including extensive strategy and technology solutions, while Genpact emphasizes business process outsourcing and sector-specific advisory services. This distinction highlights Accenture’s positioning as a comprehensive service provider compared to Genpact’s specialized approach.
Income Statement Comparison
The following table provides a comprehensive overview of the income statements for Accenture plc (ACN) and Genpact Limited (G) for their most recent fiscal years, highlighting key financial metrics.
| Metric | Accenture plc (ACN) | Genpact Limited (G) |
|---|---|---|
| Market Cap | 156.24B | 7.71B |
| Revenue | 69.67B | 4.77B |
| EBITDA | 12.94B | 0.85B |
| EBIT | 10.50B | 0.76B |
| Net Income | 7.68B | 0.51B |
| EPS | 12.29 | 2.88 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Accenture saw a revenue increase to 69.67B, marking a 7.9% growth from the prior year. Its net income also improved to 7.68B, reflecting robust operational efficiency. In contrast, Genpact reported a revenue of 4.77B, a notable growth from the previous year’s 4.48B, but its net income of 0.51B indicates a slower growth rate. While Accenture’s margins are stable, Genpact’s performance shows improving trends, yet its lower scale indicates higher relative risk. Overall, Accenture appears to maintain a stronger market position and profitability compared to Genpact.
Financial Ratios Comparison
The following table presents a comparison of key financial ratios for Accenture plc (ACN) and Genpact Limited (G) based on the most recent data available.
| Metric | ACN | G |
|---|---|---|
| ROE | 24.61% | 21.50% |
| ROIC | 16.99% | 12.96% |
| P/E | 21.16 | 14.92 |
| P/B | 5.21 | 3.21 |
| Current Ratio | 1.42 | 2.16 |
| Quick Ratio | 1.42 | 2.16 |
| D/E | 0.26 | 0.60 |
| Debt-to-Assets | 0.13 | 0.29 |
| Interest Coverage | 44.74 | 8.83 |
| Asset Turnover | 1.07 | 0.96 |
| Fixed Asset Turnover | 16.18 | 11.66 |
| Payout Ratio | 48.19% | 15.84% |
| Dividend Yield | 2.28% | 1.42% |
Interpretation of Financial Ratios
In comparing ACN and G, ACN displays stronger profitability metrics, with a higher ROE and ROIC, indicating efficient use of equity and capital. However, G shows better liquidity with a higher current and quick ratio, suggesting a stronger capability to meet short-term obligations. ACN has a lower debt-to-equity ratio and higher interest coverage, pointing to better risk management and financial stability. Overall, while ACN excels in profitability, G’s liquidity and lower debt levels could attract risk-averse investors.
Dividend and Shareholder Returns
Accenture plc (ACN) demonstrates a solid commitment to shareholder returns through a consistent dividend strategy, with a dividend payout ratio of approximately 48% and a yield of 2.3%. The company has engaged in share buybacks, enhancing shareholder value while maintaining strong free cash flow coverage. Conversely, Genpact Limited (G) focuses on reinvestment for growth, reflected in its lack of substantial dividends, though it offers a modest yield of 1.6% and has also pursued share buyback programs. Overall, both strategies align with long-term value creation, albeit through different approaches.
Strategic Positioning
Accenture plc (ACN) holds a significant market share in the Information Technology Services sector, driven by its extensive service offerings across strategy, consulting, and technology solutions. Its competitive edge is reinforced by advanced technologies and a robust portfolio, allowing it to effectively navigate competitive pressures. In contrast, Genpact Limited (G) operates in a similar space but focuses on business process outsourcing, which positions it slightly behind ACN in terms of market influence. Both companies face technological disruption, necessitating continuous innovation to maintain their standing.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Accenture plc (ACN) and Genpact Limited (G) over the past year, highlighting key price dynamics and trends.
Trend Analysis
1. Accenture plc (ACN) Over the past year, ACN’s stock has experienced a significant price change of -25.73%. This indicates a bearish trend. The stock reached a notable high of 388.0 and a low of 238.39, reflecting considerable volatility with a standard deviation of 43.38. Recent data from September 14, 2025, to November 30, 2025, shows a slight recovery with a positive price change of 4.8%, suggesting an acceleration in this short-term trend.
2. Genpact Limited (G) In contrast, G has shown a robust price change of +28.87% over the past year, indicating a bullish trend. The stock has fluctuated between a low of 30.9 and a high of 55.05, with a standard deviation of 6.11, indicating moderate volatility. In the recent analysis period from September 14, 2025, to November 30, 2025, G has a positive price change of 3.62%, suggesting a continuation of its bullish momentum.
In conclusion, while ACN is experiencing a bearish trend with signs of short-term recovery, G is on a strong upward trajectory, demonstrating consistent bullish performance.
Analyst Opinions
Recent analyst ratings for Accenture plc (ACN) and Genpact Limited (G) both stand at A-, indicating a strong buy recommendation. Analysts appreciate ACN’s robust return on equity (5) and return on assets (5), although its debt-to-equity score (2) raises some caution. Similarly, Genpact’s scores are impressive, particularly in discounted cash flow (5). Both firms are viewed favorably, with consensus leaning towards a buy for 2025. As always, I recommend assessing your risk tolerance before making investment decisions.
Stock Grades
In the latest evaluations, several reputable grading companies have provided insights into the ratings of Accenture plc (ACN) and Genpact Limited (G).
Accenture plc Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-09-29 |
| JP Morgan | maintain | Overweight | 2025-09-26 |
| BMO Capital | maintain | Market Perform | 2025-09-26 |
| TD Cowen | maintain | Buy | 2025-09-26 |
| Goldman Sachs | maintain | Buy | 2025-09-26 |
| Baird | maintain | Outperform | 2025-09-26 |
| Guggenheim | maintain | Buy | 2025-09-26 |
| Evercore ISI Group | maintain | Outperform | 2025-09-26 |
| RBC Capital | maintain | Outperform | 2025-09-26 |
| UBS | maintain | Buy | 2025-09-24 |
Genpact Limited Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | maintain | Neutral | 2025-08-20 |
| Needham | maintain | Buy | 2025-08-08 |
| Mizuho | maintain | Neutral | 2025-07-01 |
| Needham | maintain | Buy | 2025-06-30 |
| Baird | maintain | Neutral | 2025-05-08 |
| Needham | maintain | Buy | 2025-05-08 |
| Mizuho | maintain | Neutral | 2025-02-10 |
| Needham | maintain | Buy | 2025-02-07 |
| Jefferies | upgrade | Buy | 2025-01-21 |
| Needham | maintain | Buy | 2024-11-11 |
In summary, both ACN and G have maintained their favorable positions, with ACN receiving consistent “Outperform” and “Buy” ratings, while G holds a mix of “Buy” and “Neutral” ratings, indicating a stable sentiment among analysts.
Target Prices
Based on the latest available data, here are the target prices for Accenture plc (ACN) and Genpact Limited (G).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Accenture plc | 370 | 251 | 294.18 |
| Genpact Limited | 53 | 53 | 53 |
For Accenture, the consensus target suggests a potential upside from the current price of 250.03, while Genpact’s target matches its current price of 44.06, indicating market stability.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Accenture plc (ACN) and Genpact Limited (G) based on the most recent data.
| Criterion | Accenture plc (ACN) | Genpact Limited (G) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (Net Margin: 11.02%) | Moderate (Net Margin: 10.78%) |
| Innovation | High | Moderate |
| Global presence | Extensive | Moderate |
| Market Share | Leading | Growing |
| Debt level | Low (Debt/Equity: 0.26) | Moderate (Debt/Equity: 0.60) |
Key takeaways indicate that Accenture has a more diversified portfolio and stronger profitability metrics compared to Genpact, which is catching up but still has room for growth in market presence and innovation.
Risk Analysis
The following table outlines the key risks associated with Accenture plc (ACN) and Genpact Limited (G) to help in evaluating potential investment decisions.
| Metric | Accenture plc (ACN) | Genpact Limited (G) |
|---|---|---|
| Market Risk | Moderate | Low |
| Regulatory Risk | High | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
In summary, Accenture faces high regulatory and moderate geopolitical risks, while Genpact is exposed to high operational risks and moderate geopolitical threats. Recent regulatory changes and geopolitical tensions could significantly impact both companies’ operations and profitability.
Which one to choose?
In comparing Accenture plc (ACN) and Genpact Limited (G), both companies exhibit strong fundamentals, with a rating of A- from analysts. However, their growth trajectories differ. ACN shows a bearish stock trend with a -25.73% price change, indicating potential volatility, while G has a bullish trend with a +28.87% price change, suggesting consistent growth. ACN’s P/E ratio is higher at 21.16 compared to G’s 10.03, reflecting investor optimism but also potential overvaluation. Genpact’s current ratio of 2.15 indicates stronger liquidity than ACN’s 1.42.
Investors focused on growth may prefer Genpact, given its favorable stock trend and attractive valuations. Conversely, those prioritizing stability might lean toward Accenture, despite its recent stock decline, due to its robust financial metrics.
Specific risks include market dependence and competition, particularly in the consulting and business services sector.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Accenture plc and Genpact Limited to enhance your investment decisions:
