Contrasting Amadeus IT Group (OTCMKTS:AMADY) & Accenture (NYSE:ACN)

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

Institutional and Insider Ownership

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

Profitability

This table compares Amadeus IT Group and Accenture’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amadeus IT Group	19.86%	29.84%	12.46%
Accenture	11.28%	26.53%	12.58%

Analyst Ratings

This is a breakdown of current recommendations for Amadeus IT Group and Accenture, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amadeus IT Group	2	1	4	0	2.29
Accenture	0	17	10	0	2.37

Accenture has a consensus target price of $221.07, indicating a potential downside of 15.45%. Given Accenture’s stronger consensus rating and higher probable upside, analysts plainly believe Accenture is more favorable than Amadeus IT Group.

Earnings & Valuation

This table compares Amadeus IT Group and Accenture”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amadeus IT Group	$7.37 billion	3.87	$1.51 billion	$3.53	18.73
Accenture	$74.18 billion	2.08	$8.37 billion	$13.56	19.28

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

Dividends

Amadeus IT Group pays an annual dividend of $1.72 per share and has a dividend yield of 2.6%. Accenture pays an annual dividend of $6.84 per share and has a dividend yield of 2.6%. Amadeus IT Group pays out 48.7% of its earnings in the form of a dividend. Accenture pays out 50.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Accenture has raised its dividend for 20 consecutive years. Accenture is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Amadeus IT Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Summary

Accenture beats Amadeus IT Group on 13 of the 17 factors compared between the two stocks.

About Amadeus IT Group

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through three segments: Air Distribution, Air IT Solutions, and Hospitality & Other Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services, and other processing solutions through Amadeus GDS, Altéa PSS, and New Skies platforms. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, software distribution, regional support, data processing, intermediation, computer consulting, installation of industrial machinery and equipment, consultancy and technology development services for payments, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, and travel buyers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.

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.