Gartner (NYSE: IT) and Accenture (NYSE:ACN) are both large-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
Risk and Volatility
Gartner has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Accenture has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
95.4% of Gartner shares are held by institutional investors. Comparatively, 75.2% of Accenture shares are held by institutional investors. 4.3% of Gartner shares are held by insiders. Comparatively, 0.2% of Accenture shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
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. Gartner has increased its dividend for 8 consecutive years.
Earnings & Valuation
This table compares Gartner and Accenture’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gartner||$2.44 billion||4.83||$193.58 million||($0.34)||-382.74|
|Accenture||$36.77 billion||2.77||$3.45 billion||$5.64||28.39|
Accenture has higher revenue and earnings than Gartner. Gartner is trading at a lower price-to-earnings ratio than Accenture, indicating that it is currently the more affordable of the two stocks.
This table compares Gartner and Accenture’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Gartner and Accenture, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gartner currently has a consensus price target of $131.89, suggesting a potential upside of 1.35%. Accenture has a consensus price target of $155.86, suggesting a potential downside of 2.65%. Given Gartner’s stronger consensus rating and higher probable upside, analysts plainly believe Gartner is more favorable than Accenture.
Accenture beats Gartner on 9 of the 17 factors compared between the two stocks.
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.
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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