Accenture PLC (ACN) vs Wipro Limited (WIT)

Accenture PLC and Wipro Limited are both Information Technology Services companies. Accenture PLC is the larger, with a market value of $137.6B against $18.5B — 7.4× the size. Wipro Limited trades at the lower P/E: 16.3× against 16.7×. Accenture PLC grew revenue faster over the last twelve months: 6.47% against −4.81%. Wipro Limited has the higher net margin (13.9% vs 11.3%) and the lower return on invested capital (17.0% vs 23.8%). Both pay a dividend; Wipro Limited yields more (4.44% vs 2.87%). Across the 23 metrics below, Accenture PLC leads on 13 and Wipro Limited on 10.

Valuation

Metric ACN WIT Information Technology Services median
P/E 16.73 16.35 16.42
P/S 1.86 2.07 1.06
P/B 119.41 2.49 1.57
Price to free cash flow 11.89 15.71 11.62
EV/EBITDA 10.34 9.41 9.74
EV/Sales 1.83 1.83 1.23
Earnings yield 5.98% 6.12% 4.25%
Free cash flow yield 8.41% 6.36% 4.50%

Profitability

Metric ACN WIT Information Technology Services median
Gross margin 32.05% 29.04% 29.97%
Operating margin 15.38% 16.29% 3.30%
Net margin 11.28% 13.91% 2.09%
Free cash flow margin 15.66% 13.14% 1.51%
Return on equity 50.11% 14.97% 3.67%
Return on assets 12.04% 9.42% 0.47%
Return on invested capital 23.76% 17.04% 0.57%

Growth

Metric ACN WIT Information Technology Services median
Revenue growth (TTM) 6.47% (4.81%) 7.12%
EPS growth (last fiscal year) 13.60% (7.14%) 1.38%
Revenue growth, 5-year CAGR 7.98% 3.11% 7.86%
Net income growth, 5-year CAGR 7.21% (0.95%) 0.00%

Health

Metric ACN WIT Information Technology Services median
Debt to equity 0.31 0.23 0.45
Current ratio 1.43 1.67 1.66
Net debt to EBITDA (0.20) (2.08) 0.45

Dividend

Metric ACN WIT Information Technology Services median
Dividend yield 2.87% 4.44% 1.97%
Payout ratio 0.48 0.73 0.30

Size

Metric ACN WIT Information Technology Services median
Market cap 137.64b 18.50b 1.11b

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