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

Analyst Recommendations

This is a breakdown of current recommendations for Accenture PLC and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accenture PLC 1 8 13 0 2.55
Accenture PLC Competitors 1010 5153 7768 221 2.51

Accenture PLC currently has a consensus target price of $133.84, suggesting a potential downside of 3.02%. As a group, “IT Services & Consulting” companies have a potential upside of 2.60%. Given Accenture PLC’s peers higher possible upside, analysts plainly believe Accenture PLC has less favorable growth aspects than its peers.

Volatility and Risk

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

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 raised its dividend for 7 consecutive years.

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 -23.88% -65.18% -4.34%

Insider & Institutional Ownership

77.7% of Accenture PLC shares are owned by institutional investors. Comparatively, 60.6% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 0.2% of Accenture PLC shares are owned by company insiders. Comparatively, 17.2% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Accenture PLC and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Accenture PLC $34.19 billion $5.80 billion 24.47
Accenture PLC Competitors $2.10 billion $363.43 million 11.47

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.

Summary

Accenture PLC beats its peers on 10 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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