In the rapidly evolving landscape of information technology services, two prominent players stand out: Accenture plc (ACN) and Genpact Limited (G). Both companies operate within the same industry, focusing on innovative solutions and consulting services, yet they adopt distinct strategies to capture market share. Accenture emphasizes a broad array of technology and consulting offerings, while Genpact specializes in business process outsourcing. As we delve into this analysis, I’ll help you discern which company presents a more compelling investment opportunity.
Table of contents
Company Overview
Accenture Overview
Accenture plc (ACN) is a leading global professional services company headquartered in Dublin, Ireland. Founded in 1951, its mission is to drive innovation and efficiency through strategy, consulting, digital transformation, technology, and operations services. With a market cap of approximately $151.3B, Accenture provides a comprehensive range of services that include data management, intelligent automation, and cloud solutions, aimed at enhancing business performance for clients across various sectors. It employs around 801K professionals globally and is recognized for its commitment to sustainability and corporate responsibility.
Genpact Overview
Genpact Limited (G), established in 1997 and based in Hamilton, Bermuda, specializes in business process outsourcing and IT services. With a market capitalization of about $7.7B, Genpact’s mission focuses on transforming business operations through data-driven insights and analytics. The company operates in diverse segments, including banking, healthcare, and consumer goods, offering services like finance and accounting, supply chain management, and enterprise risk solutions. With a workforce of approximately 145K, Genpact is dedicated to delivering operational excellence and sustainability to its clients.
Key similarities between Accenture and Genpact include their focus on technology-driven services within the information technology sector and their commitment to innovation and client transformation. However, while Accenture offers a broader range of consulting and technology services globally, Genpact primarily emphasizes business process outsourcing and operational services tailored to specific industries.
Income Statement Comparison
The following table provides a comparison of the most recent income statements for Accenture plc and Genpact Limited, highlighting key financial metrics.
| Metric | Accenture plc (ACN) | Genpact Limited (G) |
|---|---|---|
| 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 |
Interpretation of Income Statement
In the most recent fiscal year, Accenture reported a revenue increase to 69.67B, up from 64.89B the previous year, indicating strong growth. Their net income also rose to 7.68B, reflecting improved operational efficiency. In contrast, Genpact’s revenue climbed from 4.48B to 4.77B, with a net income of 0.51B, suggesting stable performance. However, Genpact’s margins remain under pressure compared to Accenture, which showcases superior profitability and robust growth rates. Overall, while Accenture continues to expand, Genpact’s growth appears modest, underscoring the need for careful evaluation of their respective market positions.
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. This information can assist investors in evaluating the financial health and operational efficiency of each company.
| Metric | [Company A: ACN] | [Company B: G] |
|---|---|---|
| ROE | 24.6% | 21.5% |
| ROIC | 16.9% | 12.9% |
| P/E | 21.2 | 10.0 |
| P/B | 5.2 | 2.8 |
| Current Ratio | 1.42 | 2.16 |
| Quick Ratio | 1.42 | 1.44 |
| D/E | 0.26 | 0.60 |
| Debt-to-Assets | 12.5% | 31.3% |
| Interest Coverage | 44.7 | 8.8 |
| Asset Turnover | 1.07 | 0.96 |
| Fixed Asset Turnover | 16.2 | 11.7 |
| Payout ratio | 48.2% | 15.8% |
| Dividend yield | 2.8% | 1.5% |
Interpretation of Financial Ratios
Accenture (ACN) exhibits strong financial health with higher ROE, ROIC, and interest coverage ratios compared to Genpact (G). This suggests better profitability and capital efficiency. However, Genpact’s lower P/E and P/B ratios may indicate it is undervalued. The current ratio for Genpact is significantly higher, suggesting better liquidity. Nonetheless, a higher debt-to-assets ratio for Genpact raises potential concerns regarding leverage.
Dividend and Shareholder Returns
Accenture plc (ACN) pays dividends with a current yield of 2.28% and a payout ratio around 48%. Their trend in dividend per share has been positive, supported by robust free cash flow. However, there are risks associated with potential unsustainable distributions if earnings falter. On the other hand, Genpact Limited (G) also pays dividends, yielding 1.58%, but has a lower payout ratio of 15.84%, indicating a stronger reinvestment strategy. Both companies engage in share buybacks, contributing to shareholder returns. Overall, these approaches seem aligned with long-term value creation, balancing immediate returns with future growth potential.
Strategic Positioning
Accenture plc (ACN) holds a significant market share in the Information Technology Services sector, leveraging its broad service offerings in strategy and consulting, technology, and operations. With a market cap of $151.3B and a diverse portfolio, it faces competitive pressure primarily from Genpact Limited (G), which, with a market cap of $7.7B, focuses on business process outsourcing. Both companies are navigating technological disruptions, but Accenture’s extensive resources and adaptability position it well against Genpact’s more specialized services.
Stock Comparison
In the past year, Accenture plc (ACN) and Genpact Limited (G) have exhibited noteworthy price movements and trading dynamics that merit a closer examination.
Trend Analysis
Accenture plc (ACN) Over the past year, ACN has experienced a significant price change of -31.13%, indicating a bearish trend. The stock has shown acceleration in this decline, with notable highs reaching 388.0 and lows at 238.39. The volatility, as indicated by a standard deviation of 43.14, suggests considerable price fluctuations. In the recent analysis period from September 7 to November 23, 2025, the price changed by -5.2%, with a standard deviation of 4.97, maintaining a neutral trend slope of 0.06.
Genpact Limited (G) In contrast, G has recorded a positive price change of 26.48% over the past year, categorizing it as a bullish trend, although it has shown signs of deceleration recently. The stock reached a high of 55.05 and a low of 30.9, with a standard deviation of 6.13 indicating moderate volatility. In the recent period from September 7 to November 23, 2025, G’s price changed by -2.18%, resulting in a neutral trend slope of 0.03, suggesting a temporary slowdown in upward momentum.
Analyst Opinions
Recent analyst recommendations for Accenture plc (ACN) indicate a solid performance with a rating of B+, reflecting strong return on assets and equity, despite some concerns about its debt levels. Analysts suggest a hold position, noting its stable growth outlook. In contrast, Genpact Limited (G) has received an A- rating, driven by robust fundamentals and a low debt-to-equity ratio, leading analysts to recommend a buy. Overall, the consensus for the current year leans towards a buy for Genpact and a hold for Accenture.
Stock Grades
In this section, I present the latest stock ratings for Accenture plc (ACN) and Genpact Limited (G), based on recent evaluations from reputable grading companies.
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 |
Overall, both companies maintain a positive outlook, with multiple “Buy” and “Outperform” ratings reflecting investor confidence, particularly for Accenture plc. Genpact Limited shows a mixed but stable performance with consistent grades from various analysts.
Target Prices
The latest consensus target prices from analysts for Accenture plc (ACN) and Genpact Limited (G) indicate a positive outlook for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Accenture plc | 370 | 251 | 294.18 |
| Genpact Limited | 53 | 53 | 53 |
Accenture (ACN) shows a consensus target price of 294.18, which is significantly above its current price of 242.07, indicating strong growth potential. Genpact (G) has a target consensus of 53, aligning closely with its current price of 43.90, reflecting sustained market confidence.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Accenture plc (ACN) and Genpact Limited (G).
| Criterion | Accenture plc (ACN) | Genpact Limited (G) |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (11% net margin) | Moderate (10.8% net margin) |
| Innovation | High | Moderate |
| Global presence | Extensive | Moderate |
| Market Share | 6% | 2% |
| Debt level | Low (26% debt/equity) | High (68% debt/equity) |
Key takeaways indicate that while Accenture excels in profitability, innovation, and global presence, Genpact shows more significant debt levels, which could pose risks.
Risk Analysis
In the following table, I present a comparative analysis of various risks associated with Accenture plc (ACN) and Genpact Limited (G).
| Metric | Accenture plc (ACN) | Genpact Limited (G) |
|---|---|---|
| Market Risk | Moderate | Moderate |
| Regulatory Risk | High | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
The most significant risks impacting both companies include regulatory and operational risks. Accenture faces stringent regulations due to its global operations, while Genpact is exposed to geopolitical uncertainties due to its extensive outsourcing functions. With the evolving regulatory landscape, I advise maintaining a cautious approach to investments in these firms.
Which one to choose?
When comparing Accenture plc (ACN) and Genpact Limited (G), I find key differences that may guide investors. ACN has shown a bearish trend recently, with a price change of -31.13%, and carries a B+ rating. It has a market cap of $162.45B and decent margins, such as a net profit margin of 11.02%. In contrast, Genpact (G) is in a bullish trend with a price increase of 26.48%, a market cap of $7.66B, and an A- rating, indicating strong operational efficiency with a net profit margin of 10.77%.
For growth-focused investors, Genpact appears to be the better option, while those seeking stability might prefer Accenture due to its larger market cap and established presence. However, both companies face risks from competitive pressures and market fluctuations.
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:
