Quick verdict: ACN vs AMAT in 2026

Overall, Accenture plc (ACN) appears to have the edge in this acn vs amat stock comparison 2026, primarily driven by its more attractive valuation, higher revenue growth, and substantial analyst-projected upside. While Applied Materials, Inc. (AMAT) boasts superior profitability margins, ACN leads significantly in free cash flow generation and debt management. Analysts show strong confidence in both, but ACN’s target price implies a much greater potential return. Not investment advice.

ACN vs AMAT: key metrics side by side

Full side-by-side comparison of ACN and AMAT across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-17.

ACN vs AMAT valuation comparison

When considering the acn vs amat fundamentals and valuation, ACN presents a distinctly more attractive profile. Accenture’s P/E ratio stands at a reasonable 15.58x, significantly lower than Applied Materials’ 39.44x. This suggests that investors are paying considerably less for each dollar of ACN’s earnings compared to AMAT. Similarly, ACN’s price-to-book (P/B) ratio of 3.84x is much more conservative than AMAT’s elevated 14.24x, indicating ACN’s stock is trading at a much lower multiple relative to its book value. These metrics strongly suggest ACN is the cheaper stock based on current earnings and assets.

Further reinforcing ACN’s valuation appeal is the Discounted Cash Flow (DCF) analysis. ACN’s DCF of $214.13 implies a healthy +10.4% upside from its current price of $194, indicating that the stock may be undervalued based on its future cash flow projections. In stark contrast, AMAT’s DCF of $-376.95 suggests a dramatic -196.7% downside from its current price of $389.9, implying significant overvaluation by this fundamental model. This significant disparity in DCF upside makes ACN a clear winner for value-oriented investors looking at the acn vs amat valuation 2026.

ACN vs AMAT growth comparison

In terms of top-line expansion, Accenture (ACN) demonstrates stronger momentum compared to Applied Materials (AMAT). ACN reported a year-over-year revenue growth of 7.4% on a substantial revenue base of $69.67 billion. This performance highlights ACN’s continued ability to secure new business and expand its services in the global consulting and technology sectors. Its broad portfolio and deep client relationships support this consistent growth trajectory.

AMAT, while a leader in the critical semiconductor equipment industry, showed a more moderate revenue growth of 4.4% year-over-year on revenues of $28.37 billion. The semiconductor industry is known for its cyclical nature, which can lead to fluctuating growth rates. While AMAT’s market position is strong, ACN’s diversified service offerings might provide a more stable and predictable growth profile, giving it an edge in this acn vs amat stock comparison 2026 for investors prioritizing consistent revenue expansion.

ACN vs AMAT profitability

When analyzing profitability, Applied Materials (AMAT) stands out with significantly higher margins compared to Accenture (ACN). AMAT boasts an impressive net margin of 27.78% and an EBITDA margin of 35.04%. These robust figures indicate AMAT’s superior efficiency in converting its revenues into profit, reflecting strong operational leverage and pricing power within the specialized semiconductor equipment market. ACN, on the other hand, recorded a net margin of 10.65% and an EBITDA margin of 16.8%, which are solid for a services-oriented business but not as high as AMAT’s.

Despite AMAT’s superior profit margins, ACN demonstrates a stronger ability to generate free cash flow relative to its market capitalization. ACN’s Free Cash Flow (FCF) yield is an excellent 10.47%, indicating that it produces a significant amount of cash for every dollar of its market value. AMAT’s FCF yield is considerably lower at 2.0%. High FCF yield is a positive indicator of a company’s financial health, flexibility, and potential for shareholder returns. While Return on Equity (ROE) data is not available for either company, ACN’s stronger FCF yield suggests it converts a higher portion of its earnings into accessible cash, which is a critical factor in evaluating acn vs amat fundamentals and valuation.

Analyst ratings: ACN vs AMAT

Both ACN and AMAT enjoy strong consensus ‘Buy’ ratings from analysts, indicating a positive sentiment across the financial community. Applied Materials (AMAT) has a slightly higher percentage of ‘Buy’ ratings, with 79.3% out of 53 analysts recommending it, compared to Accenture’s (ACN) 73.6% from the same number of analysts. This marginal difference suggests a slightly stronger analyst preference for AMAT at the current moment, possibly due to its crucial role in the booming semiconductor industry.

However, when it comes to potential price appreciation, ACN presents a much more compelling case according to analyst targets. The consensus price target for ACN is $299.92, implying a substantial upside of +54.6% from its current price of $194. In contrast, AMAT’s consensus price target of $426.39 suggests a more modest upside of +9.4% from its current price of $389.9. This significant disparity in implied upside potential suggests analysts believe ACN has considerably more room for growth, making it an attractive prospect for those looking at acn vs amat stock comparison 2026 opportunities.

Should I buy ACN or AMAT stock in 2026?

For growth investors, Accenture (ACN) appears to be the more attractive choice based on current data. ACN is reporting higher year-over-year revenue growth at 7.4% compared to AMAT’s 4.4%. Furthermore, analyst price targets suggest a massive +54.6% upside for ACN, dwarfing AMAT’s +9.4%. This indicates a strong belief that ACN’s diversified consulting and technology services will continue to expand robustly in 2026, offering greater capital appreciation potential.

Value investors considering should i buy acn or amat stock 2026 will find ACN to be the standout. ACN’s valuation metrics, including a P/E ratio of 15.58x and a P/B ratio of 3.84x, are significantly lower and more appealing than AMAT’s 39.44x P/E and 14.24x P/B. Most compellingly, ACN’s DCF model points to a positive 10.4% upside, whereas AMAT shows a steep -196.7% downside, making ACN appear substantially undervalued relative to its intrinsic worth.

For income-focused investors, neither ACN nor AMAT are primary dividend stocks. ACN offers a minimal dividend yield of 0.03%, while AMAT currently has a 0.0% dividend yield. Therefore, if generating regular income is your main investment objective, you would likely need to explore other investment opportunities beyond this acn vs amat stock comparison 2026. This is not investment advice; always conduct your own thorough research.

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