Actua (NASDAQ: ACTA) and Accenture (NYSE:ACN) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Insider and Institutional Ownership
72.5% of Actua shares are owned by institutional investors. Comparatively, 72.5% of Accenture shares are owned by institutional investors. 10.2% of Actua shares are owned by company insiders. Comparatively, 0.2% of Accenture shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Actua and Accenture’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Actua||$109.30 million||4.64||$70.08 million||$2.21||7.01|
|Accenture||$36.77 billion||2.73||$3.45 billion||$5.44||27.96|
Accenture has higher revenue and earnings than Actua. Actua is trading at a lower price-to-earnings ratio than Accenture, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Actua and Accenture, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Actua presently has a consensus target price of $17.00, suggesting a potential upside of 9.68%. Accenture has a consensus target price of $145.57, suggesting a potential downside of 4.29%. Given Actua’s higher probable upside, equities analysts plainly believe Actua is more favorable than Accenture.
This table compares Actua and Accenture’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Actua has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Accenture has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Accenture pays an annual dividend of $2.66 per share and has a dividend yield of 1.7%. Actua does not pay a dividend. Accenture pays out 48.9% of its earnings in the form of a dividend. Accenture has raised its dividend for 7 consecutive years.
Accenture beats Actua on 9 of the 16 factors compared between the two stocks.
Actua Company Profile
Actua Corporation, formerly ICG Group, Inc., is a multi-vertical cloud technology company. The Company operates through two segments, which include the vertical cloud segment and the vertical cloud (venture) segment. The Company’s vertical cloud-based businesses include Bolt Solutions Inc. (Bolt), Folio Dynamics Holdings Inc. (FolioDynamix), GovDelivery Holdings, Inc. (GovDelivery) and VelocityEHS Holdings, Inc. (VelocityEHS), which operate in the commercial and personal property and casualty insurance, wealth management, government communications and environmental, health and safety (EH&S) markets, respectively. The vertical cloud (venture) businesses include InstaMed Holdings, Inc. (InstaMed) and Parchment Inc. (Parchment), which operate a cloud-based healthcare payments network and an education credentials technology, respectively.
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.
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