Head-To-Head Contrast: Wipro (NYSE:WIT) & Accenture (NYSE:ACN)

Wipro (NYSE:WIT) and Accenture (NYSE:ACN) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Dividends

Wipro pays an annual dividend of $0.12 per share and has a dividend yield of 5.1%. Accenture pays an annual dividend of $6.52 per share and has a dividend yield of 3.5%. Wipro pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Accenture pays out 53.4% of its earnings in the form of a dividend. Accenture has raised its dividend for 20 consecutive years.

Risk & Volatility

Wipro has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Wipro and Accenture’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wipro	14.25%	14.97%	9.68%
Accenture	10.61%	26.33%	12.94%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Wipro and Accenture, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	1	2	0	0	1.67
Accenture	0	10	17	0	2.63

Accenture has a consensus target price of $274.50, indicating a potential upside of 46.54%. Given Accenture’s stronger consensus rating and higher possible upside, analysts clearly believe Accenture is more favorable than Wipro.

Valuation and Earnings

This table compares Wipro and Accenture”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wipro	$9.87 billion	2.50	$1.41 billion	$0.14	16.82
Accenture	$69.67 billion	1.79	$7.68 billion	$12.21	15.34

Accenture has higher revenue and earnings than Wipro. Accenture is trading at a lower price-to-earnings ratio than Wipro, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

2.4% of Wipro shares are held by institutional investors. Comparatively, 75.1% of Accenture shares are held by institutional investors. 1.0% of Wipro shares are held by insiders. Comparatively, 0.0% of Accenture shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Accenture beats Wipro on 12 of the 17 factors compared between the two stocks.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.

About Accenture

Accenture plc, a professional services company, provides strategy and consulting, industry X, song, and technology and operation services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, software and quality engineering, data management; intelligent automation comprising robotic process automation, natural language processing, and virtual agents; and application management services, as well as software engineering services; strategy and consulting services; data and analytics strategy, data discovery and augmentation, data management and beyond, data democratization, and industrialized solutions comprising turnkey analytics and artificial intelligence (AI) solutions; metaverse; and sustainability services. It also provides change management, HR transformation and delivery, organization strategy and design, talent strategy and development, and leadership and culture services; digital commerce; infrastructure services, including cloud infrastructure managed, cloud and data center, network, digital workplace, database platforms, service management, and cloud and infrastructure security services; data-enabled operating models; technology consulting and AI services; and technology consulting services. In addition, the company offers engineering and R&D digitization, smart connected products, product as-a-service enablement, capital projects, intelligent asset management, digital industrial workforce, and autonomous robotic systems; business process outsourcing; and services related to technology innovation. Further, it provides cloud, ecosystem, marketing, security, supply chain management, zero-based transformation, customer experience, finance consulting, mergers and acquisitions, and sustainability services. The company has a collaboration with Salesforce, Inc. to develop Salesforce Life Sciences Cloud. The company was founded in 1951 and is based in Dublin, Ireland.