Accenture plc (ACN)vsInternational Business Machines (IBM)
ACN
Accenture plc
$165.92
+1.61%
TECHNOLOGY · Cap: $85.73B
IBM
International Business Machines
$223.65
+0.86%
TECHNOLOGY · Cap: $193.40B
Smart Verdict
WallStSmart Research — data-driven comparison
Accenture plc generates 6% more annual revenue ($73.10B vs $68.91B). IBM leads profitability with a 15.6% profit margin vs 10.7%. ACN appears more attractively valued with a PEG of 1.02. ACN earns a higher WallStSmart Score of 69/100 (B-).
ACN
Strong Buy69
out of 100
Grade: B-
IBM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.0%
Fair Value
$200.02
Current Price
$165.92
$34.10 discount
Margin of Safety
-74.3%
Fair Value
$130.59
Current Price
$223.65
$93.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Conservative balance sheet, low leverage
Generating 3.6B in free cash flow
Every $100 of equity generates 31 in profit
Large-cap with strong market position
Generating 2.2B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ACN
The strongest argument for ACN centers on P/E Ratio, Market Cap, Return on Equity. PEG of 1.02 suggests the stock is reasonably priced for its growth.
Bull Case : IBM
The strongest argument for IBM centers on Return on Equity, Market Cap, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.
Bear Case : ACN
The primary concerns for ACN are Piotroski F-Score.
Bear Case : IBM
The primary concerns for IBM are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.89 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACN profiles as a value stock while IBM is a mature play — different risk/reward profiles.
ACN carries more volatility with a beta of 1.12 — expect wider price swings.
IBM is growing revenue faster at 9.5% — sustainability is the question.
ACN generates stronger free cash flow (3.6B), providing more financial flexibility.
Bottom Line
ACN scores higher overall (69/100 vs 59/100). Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Accenture plc
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Accenture plc is an Irish-domiciled multinational company that provides consulting and processing services. It has been incorporated in Dublin, Ireland since 2009.
International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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