Contrasting Accenture PLC (ACN) and Its Rivals

Accenture PLC (NYSE: ACN) is one of 197 public companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Accenture PLC to related businesses based on the strength of its profitability, institutional ownership, dividends, risk, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings for Accenture PLC and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accenture PLC 1 8 13 0 2.55
Accenture PLC Competitors 1007 5133 7754 220 2.51

Accenture PLC presently has a consensus price target of $132.00, indicating a potential downside of 3.61%. As a group, “IT Services & Consulting” companies have a potential upside of 2.08%. Given Accenture PLC’s peers higher probable upside, analysts plainly believe Accenture PLC has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Accenture PLC and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Accenture PLC $34.19 billion $5.80 billion 24.28
Accenture PLC Competitors $2.11 billion $365.95 million 12.50

Accenture PLC has higher revenue and earnings than its peers. Accenture PLC is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Accenture PLC has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Accenture PLC’s peers have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Insider and Institutional Ownership

77.7% of Accenture PLC shares are owned by institutional investors. Comparatively, 62.2% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 0.2% of Accenture PLC shares are owned by insiders. Comparatively, 16.6% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Accenture PLC and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accenture PLC 9.92% 43.96% 18.02%
Accenture PLC Competitors -23.99% -65.39% -4.43%

Dividends

Accenture PLC pays an annual dividend of $2.42 per share and has a dividend yield of 1.8%. Accenture PLC pays out 42.9% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.7% and pay out 35.8% of their earnings in the form of a dividend. Accenture PLC has increased its dividend for 7 consecutive years.

Summary

Accenture PLC beats its peers on 10 of the 15 factors compared.

About Accenture PLC

Accenture plc is a professional services company serving clients in various industries and in geographic regions, including North America, Europe and Growth Markets. The Company provides management and technology consulting services. Its segments include Communications, Media and Technology; Financial Services; Health and Public Service; Products, and Resources. The Communications, Media & Technology segment serves communications, electronics, technology, media and entertainment industries. The Financial Services segment serves banking, capital markets and insurance industries. The Health & Public service segment serves healthcare payers and providers, and government departments and agencies, public service organizations, educational institutions and non-profit organizations. The Products segment serves a set of interconnected consumer-relevant industries. The Resources segment serves chemicals, energy, forest products, metals and mining, utilities and related industries.

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