ACN vs. STM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACN and STM, 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 STM’s 28.89 billion USD, indicating a significant difference in their market valuations.
With betas of 1.33 for ACN and 1.23 for STM, both stocks show similar sensitivity to overall market movements.
STM is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ACN, on the other hand, is a domestic entity.
| Symbol | ACN | STM |
|---|---|---|
| Company Name | Accenture plc | STMicroelectronics N.V. |
| Country | IE | NL |
| Sector | Technology | Technology |
| Industry | Information Technology Services | Semiconductors |
| CEO | Julie T. Spellman Sweet | Jean-Marc Chery |
| Price | 304.78 USD | 32.29 USD |
| Market Cap | 190.80 billion USD | 28.89 billion USD |
| Beta | 1.33 | 1.23 |
| Exchange | NYSE | NYSE |
| IPO Date | July 19, 2001 | December 8, 1994 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ACN and STM 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.
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.
STM
6.31%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
STM’s Return on Equity of 6.31% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
STM
4.08%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
STM’s Return on Invested Capital of 4.08% is in line with the norm for the Semiconductors industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
STM
8.94%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
STM’s Net Profit Margin of 8.94% 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.
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.
STM
8.89%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
STM’s Operating Profit Margin of 8.89% is around the midpoint for the Semiconductors industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ACN | STM |
|---|---|---|
| Return on Equity (TTM) | 27.11% | 6.31% |
| Return on Assets (TTM) | 12.55% | 4.42% |
| Return on Invested Capital (TTM) | 17.83% | 4.08% |
| Net Profit Margin (TTM) | 11.61% | 8.94% |
| Operating Profit Margin (TTM) | 15.38% | 8.89% |
| Gross Profit Margin (TTM) | 32.07% | 37.48% |
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.
STM
3.05
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
STM’s Current Ratio of 3.05 aligns with the median group of the Semiconductors industry, indicating that its short-term liquidity is in line with its sector peers.
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.
STM
0.16
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
STM’s Debt-to-Equity Ratio of 0.16 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
STM
24.33
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
STM’s Interest Coverage Ratio of 24.33 is positioned comfortably within the norm for the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACN | STM |
|---|---|---|
| Current Ratio (TTM) | 1.46 | 3.05 |
| Quick Ratio (TTM) | 1.46 | 2.24 |
| Debt-to-Equity Ratio (TTM) | 0.19 | 0.16 |
| Debt-to-Asset Ratio (TTM) | 0.09 | 0.12 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.32 | 0.38 |
| Interest Coverage Ratio (TTM) | 210.82 | 24.33 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACN and STM. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
STM
1.03%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.03%, STM offers a more attractive income stream than most of its peers in the Semiconductors industry, signaling a strong commitment to shareholder returns.
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.
STM
21.80%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
STM’s Dividend Payout Ratio of 21.80% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ACN | STM |
|---|---|---|
| Dividend Yield (TTM) | 1.88% | 1.03% |
| Dividend Payout Ratio (TTM) | 45.10% | 21.80% |
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.
STM
27.37
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
STM’s P/E Ratio of 27.37 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
STM
0.54
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.
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.
STM
2.34
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
STM’s P/S Ratio of 2.34 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
STM
1.70
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
STM’s P/B Ratio of 1.70 is in the lower quartile for the Semiconductors industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ACN | STM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 23.94 | 27.37 |
| Forward PEG Ratio (TTM) | 2.73 | 0.54 |
| Price-to-Sales Ratio (P/S, TTM) | 2.79 | 2.34 |
| Price-to-Book Ratio (P/B, TTM) | 6.23 | 1.70 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 60.08 | 122.94 |
| EV-to-EBITDA (TTM) | 15.83 | 10.40 |
| EV-to-Sales (TTM) | 2.73 | 2.43 |