Accenture PLC (NYSE: ACN) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare Accenture PLC to related companies based on the strength of its profitability, earnings, analyst recommendations, institutional ownership, valuation, risk and dividends.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Accenture PLC $34.85 billion $5.94 billion 24.90
Accenture PLC Competitors $2.14 billion $366.31 million 16.32

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

Dividends

Accenture PLC pays an annual dividend of $2.42 per share and has a dividend yield of 1.8%. Accenture PLC pays out 44.5% 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 36.1% of their earnings in the form of a dividend. Accenture PLC has increased its dividend for 7 consecutive years.

Volatility and Risk

Accenture PLC has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Accenture PLC’s competitors have a beta of 1.27, indicating that their average share price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Accenture PLC and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accenture PLC 1 9 13 0 2.52
Accenture PLC Competitors 1008 5177 7773 222 2.51

Accenture PLC presently has a consensus target price of $140.14, suggesting a potential upside of 3.47%. As a group, “IT Services & Consulting” companies have a potential upside of 1.22%. Given Accenture PLC’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Accenture PLC is more favorable than its competitors.

Insider & Institutional Ownership

77.7% of Accenture PLC shares are held by institutional investors. Comparatively, 61.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 0.2% of Accenture PLC shares are held by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Accenture PLC 9.37% 42.65% 17.82%
Accenture PLC Competitors -22.24% -66.04% -4.47%

Summary

Accenture PLC beats its competitors on 11 of the 15 factors compared.

Accenture PLC Company Profile

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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