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ACN vs. ALAB: A Head-to-Head Stock Comparison

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Here’s a clear look at ACN and ALAB, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ACN’s market capitalization of 190.80 billion USD is substantially larger than ALAB’s 14.97 billion USD, indicating a significant difference in their market valuations.

With betas of 1.33 for ACN and 1.40 for ALAB, both stocks show similar sensitivity to overall market movements.

SymbolACNALAB
Company NameAccenture plcAstera Labs, Inc. Common Stock
CountryIEUS
SectorTechnologyTechnology
IndustryInformation Technology ServicesSemiconductors
CEOJulie T. Spellman SweetJitendra Mohan
Price304.78 USD90.8 USD
Market Cap190.80 billion USD14.97 billion USD
Beta1.331.40
ExchangeNYSENASDAQ
IPO DateJuly 19, 2001March 20, 2024
ADRNoNo

Historical Performance

This chart compares the performance of ACN and ALAB by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ACN vs. ALAB: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ACN

27.11%

Information Technology Services Industry

Max
47.24%
Q3
23.27%
Median
12.85%
Q1
2.22%
Min
-26.63%

In the upper quartile for the Information Technology Services industry, ACN’s Return on Equity of 27.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ALAB

4.43%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

ALAB’s Return on Equity of 4.43% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.

ACN vs. ALAB: A comparison of their ROE against their respective Information Technology Services and Semiconductors industry benchmarks.

Return on Invested Capital

ACN

17.83%

Information Technology Services Industry

Max
28.29%
Q3
13.19%
Median
7.24%
Q1
0.23%
Min
-18.82%

In the upper quartile for the Information Technology Services industry, ACN’s Return on Invested Capital of 17.83% signifies a highly effective use of its capital to generate profits when compared to its peers.

ALAB

-4.25%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

ALAB has a negative Return on Invested Capital of -4.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

ACN vs. ALAB: A comparison of their ROIC against their respective Information Technology Services and Semiconductors industry benchmarks.

Net Profit Margin

ACN

11.61%

Information Technology Services Industry

Max
20.47%
Q3
11.62%
Median
5.97%
Q1
1.89%
Min
-4.62%

ACN’s Net Profit Margin of 11.61% is aligned with the median group of its peers in the Information Technology Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

ALAB

8.44%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

ALAB’s Net Profit Margin of 8.44% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.

ACN vs. ALAB: A comparison of their Net Profit Margin against their respective Information Technology Services and Semiconductors industry benchmarks.

Operating Profit Margin

ACN

15.38%

Information Technology Services Industry

Max
29.42%
Q3
14.75%
Median
8.92%
Q1
2.62%
Min
-11.92%

An Operating Profit Margin of 15.38% places ACN in the upper quartile for the Information Technology Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ALAB

-4.45%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

ALAB has a negative Operating Profit Margin of -4.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

ACN vs. ALAB: A comparison of their Operating Margin against their respective Information Technology Services and Semiconductors industry benchmarks.

Profitability at a Glance

SymbolACNALAB
Return on Equity (TTM)27.11%4.43%
Return on Assets (TTM)12.55%3.69%
Return on Invested Capital (TTM)17.83%-4.25%
Net Profit Margin (TTM)11.61%8.44%
Operating Profit Margin (TTM)15.38%-4.45%
Gross Profit Margin (TTM)32.07%75.76%

Financial Strength

Current Ratio

ACN

1.46

Information Technology Services Industry

Max
3.41
Q3
2.37
Median
1.58
Q1
1.20
Min
0.00

ACN’s Current Ratio of 1.46 aligns with the median group of the Information Technology Services industry, indicating that its short-term liquidity is in line with its sector peers.

ALAB

13.92

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

ALAB’s Current Ratio of 13.92 is exceptionally high, placing it well outside the typical range for the Semiconductors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

ACN vs. ALAB: A comparison of their Current Ratio against their respective Information Technology Services and Semiconductors industry benchmarks.

Debt-to-Equity Ratio

ACN

0.19

Information Technology Services Industry

Max
2.63
Q3
1.16
Median
0.48
Q1
0.09
Min
0.01

ACN’s Debt-to-Equity Ratio of 0.19 is typical for the Information Technology Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ALAB

--

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

Debt-to-Equity Ratio data for ALAB is currently unavailable.

ACN vs. ALAB: A comparison of their D/E Ratio against their respective Information Technology Services and Semiconductors industry benchmarks.

Interest Coverage Ratio

ACN

210.82

Information Technology Services Industry

Max
17.52
Q3
10.04
Median
4.66
Q1
0.80
Min
-10.50

With an Interest Coverage Ratio of 210.82, ACN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Information Technology Services industry. This stems from either robust earnings or a conservative debt load.

ALAB

--

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

Interest Coverage Ratio data for ALAB is currently unavailable.

ACN vs. ALAB: A comparison of their Interest Coverage against their respective Information Technology Services and Semiconductors industry benchmarks.

Financial Strength at a Glance

SymbolACNALAB
Current Ratio (TTM)1.4613.92
Quick Ratio (TTM)1.4613.26
Debt-to-Equity Ratio (TTM)0.19--
Debt-to-Asset Ratio (TTM)0.09--
Net Debt-to-EBITDA Ratio (TTM)-0.324.76
Interest Coverage Ratio (TTM)210.82--

Growth

The following charts compare key year-over-year (YoY) growth metrics for ACN and ALAB. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ACN vs. ALAB: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ACN vs. ALAB: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ACN vs. ALAB: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ACN

1.88%

Information Technology Services Industry

Max
16.57%
Q3
1.39%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.88%, ACN offers a more attractive income stream than most of its peers in the Information Technology Services industry, signaling a strong commitment to shareholder returns.

ALAB

0.00%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ACN vs. ALAB: A comparison of their Dividend Yield against their respective Information Technology Services and Semiconductors industry benchmarks.

Dividend Payout Ratio

ACN

45.10%

Information Technology Services Industry

Max
112.81%
Q3
20.98%
Median
0.00%
Q1
0.00%
Min
0.00%

ACN’s Dividend Payout Ratio of 45.10% is in the upper quartile for the Information Technology Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ALAB

0.00%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

ALAB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ACN vs. ALAB: A comparison of their Payout Ratio against their respective Information Technology Services and Semiconductors industry benchmarks.

Dividend at a Glance

SymbolACNALAB
Dividend Yield (TTM)1.88%0.00%
Dividend Payout Ratio (TTM)45.10%0.00%

Valuation

Price-to-Earnings Ratio

ACN

23.94

Information Technology Services Industry

Max
49.12
Q3
36.91
Median
24.84
Q1
15.88
Min
1.55

ACN’s P/E Ratio of 23.94 is within the middle range for the Information Technology Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ALAB

357.98

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

At 357.98, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ACN vs. ALAB: A comparison of their P/E Ratio against their respective Information Technology Services and Semiconductors industry benchmarks.

Forward P/E to Growth Ratio

ACN

2.73

Information Technology Services Industry

Max
5.35
Q3
3.79
Median
2.23
Q1
1.19
Min
0.03

ACN’s Forward PEG Ratio of 2.73 is within the middle range of its peers in the Information Technology Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ALAB

10.80

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

ACN vs. ALAB: A comparison of their Forward PEG Ratio against their respective Information Technology Services and Semiconductors industry benchmarks.

Price-to-Sales Ratio

ACN

2.79

Information Technology Services Industry

Max
8.15
Q3
4.17
Median
2.14
Q1
1.00
Min
0.10

ACN’s P/S Ratio of 2.79 aligns with the market consensus for the Information Technology Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ALAB

30.53

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

With a P/S Ratio of 30.53, ALAB trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ACN vs. ALAB: A comparison of their P/S Ratio against their respective Information Technology Services and Semiconductors industry benchmarks.

Price-to-Book Ratio

ACN

6.23

Information Technology Services Industry

Max
11.78
Q3
6.14
Median
3.23
Q1
1.97
Min
0.42

The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.

ALAB

14.23

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 14.23, ALAB’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ACN vs. ALAB: A comparison of their P/B Ratio against their respective Information Technology Services and Semiconductors industry benchmarks.

Valuation at a Glance

SymbolACNALAB
Price-to-Earnings Ratio (P/E, TTM)23.94357.98
Forward PEG Ratio (TTM)2.7310.80
Price-to-Sales Ratio (P/S, TTM)2.7930.53
Price-to-Book Ratio (P/B, TTM)6.2314.23
Price-to-Free Cash Flow Ratio (P/FCF, TTM)60.08138.44
EV-to-EBITDA (TTM)15.83-820.32
EV-to-Sales (TTM)2.7330.35