Seek Returns logo

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

Updated on

Here’s a clear look at ACN and CRDO, 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 CRDO’s 15.90 billion USD, indicating a significant difference in their market valuations.

CRDO carries a higher beta at 2.43, indicating it’s more sensitive to market moves, while ACN (beta: 1.33) exhibits greater stability.

SymbolACNCRDO
Company NameAccenture plcCredo Technology Group Holding Ltd
CountryIEUS
SectorTechnologyTechnology
IndustryInformation Technology ServicesCommunication Equipment
CEOJulie T. Spellman SweetWilliam J. Brennan
Price304.78 USD93.61 USD
Market Cap190.80 billion USD15.90 billion USD
Beta1.332.43
ExchangeNYSENASDAQ
IPO DateJuly 19, 2001January 27, 2022
ADRNoNo

Historical Performance

This chart compares the performance of ACN and CRDO 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. CRDO: 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.

CRDO

8.62%

Communication Equipment Industry

Max
30.07%
Q3
8.07%
Median
1.84%
Q1
-11.93%
Min
-31.65%

In the upper quartile for the Communication Equipment industry, CRDO’s Return on Equity of 8.62% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ACN vs. CRDO: A comparison of their ROE against their respective Information Technology Services and Communication Equipment 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.

CRDO

5.03%

Communication Equipment Industry

Max
11.59%
Q3
6.61%
Median
2.97%
Q1
-2.58%
Min
-13.18%

CRDO’s Return on Invested Capital of 5.03% is in line with the norm for the Communication Equipment industry, reflecting a standard level of efficiency in generating profits from its capital base.

ACN vs. CRDO: A comparison of their ROIC against their respective Information Technology Services and Communication Equipment 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.

CRDO

11.95%

Communication Equipment Industry

Max
23.65%
Q3
9.21%
Median
2.46%
Q1
-8.56%
Min
-29.87%

A Net Profit Margin of 11.95% places CRDO in the upper quartile for the Communication Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

ACN vs. CRDO: A comparison of their Net Profit Margin against their respective Information Technology Services and Communication Equipment 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.

CRDO

8.50%

Communication Equipment Industry

Max
30.72%
Q3
11.64%
Median
5.79%
Q1
-2.28%
Min
-18.20%

CRDO’s Operating Profit Margin of 8.50% is around the midpoint for the Communication Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

ACN vs. CRDO: A comparison of their Operating Margin against their respective Information Technology Services and Communication Equipment industry benchmarks.

Profitability at a Glance

SymbolACNCRDO
Return on Equity (TTM)27.11%8.62%
Return on Assets (TTM)12.55%6.45%
Return on Invested Capital (TTM)17.83%5.03%
Net Profit Margin (TTM)11.61%11.95%
Operating Profit Margin (TTM)15.38%8.50%
Gross Profit Margin (TTM)32.07%64.77%

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.

CRDO

6.62

Communication Equipment Industry

Max
3.40
Q3
2.59
Median
1.62
Q1
1.32
Min
0.86

CRDO’s Current Ratio of 6.62 is exceptionally high, placing it well outside the typical range for the Communication Equipment 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. CRDO: A comparison of their Current Ratio against their respective Information Technology Services and Communication Equipment 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.

CRDO

0.02

Communication Equipment Industry

Max
1.82
Q3
1.00
Median
0.53
Q1
0.20
Min
0.02

Falling into the lower quartile for the Communication Equipment industry, CRDO’s Debt-to-Equity Ratio of 0.02 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ACN vs. CRDO: A comparison of their D/E Ratio against their respective Information Technology Services and Communication Equipment 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.

CRDO

--

Communication Equipment Industry

Max
16.12
Q3
9.22
Median
2.52
Q1
-0.75
Min
-12.07

Interest Coverage Ratio data for CRDO is currently unavailable.

ACN vs. CRDO: A comparison of their Interest Coverage against their respective Information Technology Services and Communication Equipment industry benchmarks.

Financial Strength at a Glance

SymbolACNCRDO
Current Ratio (TTM)1.466.62
Quick Ratio (TTM)1.465.79
Debt-to-Equity Ratio (TTM)0.190.02
Debt-to-Asset Ratio (TTM)0.090.02
Net Debt-to-EBITDA Ratio (TTM)-0.32-3.56
Interest Coverage Ratio (TTM)210.82--

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

ACN vs. CRDO: 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.

CRDO

0.00%

Communication Equipment Industry

Max
4.72%
Q3
0.38%
Median
0.00%
Q1
0.00%
Min
0.00%

CRDO 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. CRDO: A comparison of their Dividend Yield against their respective Information Technology Services and Communication Equipment 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.

CRDO

0.00%

Communication Equipment Industry

Max
91.96%
Q3
26.44%
Median
0.00%
Q1
0.00%
Min
0.00%

CRDO 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. CRDO: A comparison of their Payout Ratio against their respective Information Technology Services and Communication Equipment industry benchmarks.

Dividend at a Glance

SymbolACNCRDO
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.

CRDO

305.69

Communication Equipment Industry

Max
44.37
Q3
41.98
Median
30.61
Q1
23.44
Min
2.14

At 305.69, CRDO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communication Equipment 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. CRDO: A comparison of their P/E Ratio against their respective Information Technology Services and Communication Equipment 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.

CRDO

15.99

Communication Equipment Industry

Max
15.97
Q3
6.99
Median
2.78
Q1
0.66
Min
0.05

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

ACN vs. CRDO: A comparison of their Forward PEG Ratio against their respective Information Technology Services and Communication Equipment 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.

CRDO

36.39

Communication Equipment Industry

Max
6.38
Q3
3.88
Median
2.17
Q1
1.15
Min
0.37

With a P/S Ratio of 36.39, CRDO trades at a valuation that eclipses even the highest in the Communication Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ACN vs. CRDO: A comparison of their P/S Ratio against their respective Information Technology Services and Communication Equipment 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.

CRDO

23.40

Communication Equipment Industry

Max
14.42
Q3
7.01
Median
3.09
Q1
1.38
Min
0.41

At 23.40, CRDO’s P/B Ratio is at an extreme premium to the Communication Equipment 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. CRDO: A comparison of their P/B Ratio against their respective Information Technology Services and Communication Equipment industry benchmarks.

Valuation at a Glance

SymbolACNCRDO
Price-to-Earnings Ratio (P/E, TTM)23.94305.69
Forward PEG Ratio (TTM)2.7315.99
Price-to-Sales Ratio (P/S, TTM)2.7936.39
Price-to-Book Ratio (P/B, TTM)6.2323.40
Price-to-Free Cash Flow Ratio (P/FCF, TTM)60.08547.69
EV-to-EBITDA (TTM)15.83249.22
EV-to-Sales (TTM)2.7335.88