Financial Survey: Accenture (ACN) and Gartner (IT)
Accenture (NYSE: ACN) and Gartner (NYSE:IT) are both large-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.
Valuation and Earnings
This table compares Accenture and Gartner’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Accenture||$36.77 billion||2.78||$3.45 billion||$5.64||28.54|
|Gartner||$2.44 billion||4.97||$193.58 million||($0.34)||-394.12|
This table compares Accenture and Gartner’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Accenture has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Gartner has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
Insider & Institutional Ownership
75.3% of Accenture shares are owned by institutional investors. Comparatively, 95.4% of Gartner shares are owned by institutional investors. 0.2% of Accenture shares are owned by insiders. Comparatively, 4.3% of Gartner shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Accenture pays an annual dividend of $2.66 per share and has a dividend yield of 1.7%. Gartner does not pay a dividend. Accenture pays out 47.2% of its earnings in the form of a dividend. Accenture has raised its dividend for 8 consecutive years.
This is a breakdown of current ratings for Accenture and Gartner, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Accenture presently has a consensus price target of $155.86, indicating a potential downside of 3.15%. Gartner has a consensus price target of $131.89, indicating a potential downside of 1.58%. Given Gartner’s stronger consensus rating and higher possible upside, analysts clearly believe Gartner is more favorable than Accenture.
Accenture beats Gartner on 10 of the 17 factors compared between the two stocks.
Accenture 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.
Gartner Company Profile
Gartner, Inc. is an information technology research and advisory company. The Company works with clients to research, analyze and interpret the business of information technology (IT), supply chain and marketing within the context of their individual roles. It operates in three segments: Research, Consulting and Events. Research segment consists of subscription-based research products, access to research inquiry, peer networking services and membership programs. Consulting segment consists of consulting, measurement engagements and strategic advisory services. Events segment consists of various symposia, conferences and exhibitions. It provides insight through reports, briefings, tools, access to its analysts, peer networking services and membership programs that enable its clients to make decisions about their IT, supply chain and digital marketing initiatives. Its consultants provide fact-based consulting services to help clients use and manage IT to optimize business performance.
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