Contrasting Tucows (NASDAQ:TCX) & Accenture (NYSE:ACN)

Tucows (NASDAQ:TCX) and Accenture (NYSE:ACN) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares Tucows and Accenture”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tucows	$394.44 million	0.34	-$75.82 million	($7.53)	-1.58
Accenture	$74.18 billion	2.33	$8.37 billion	$13.56	19.11

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

Volatility & Risk

Tucows has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Insider and Institutional Ownership

73.6% of Tucows shares are owned by institutional investors. Comparatively, 75.1% of Accenture shares are owned by institutional investors. 8.4% of Tucows shares are owned by insiders. Comparatively, 0.0% of Accenture shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tucows	-21.20%	N/A	-9.48%
Accenture	11.28%	26.53%	12.58%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tucows and Accenture, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tucows	1	0	0	0	1.00
Accenture	1	16	10	0	2.33

Accenture has a consensus target price of $219.52, indicating a potential downside of 15.28%. Given Accenture’s stronger consensus rating and higher possible upside, analysts clearly believe Accenture is more favorable than Tucows.

Summary

Accenture beats Tucows on 13 of the 14 factors compared between the two stocks.

About Tucows

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.

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.