Accenture (NYSE:ACN) and GrubHub (NYSE:GRUB) are both large-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.
Accenture pays an annual dividend of $2.66 per share and has a dividend yield of 1.7%. GrubHub does not pay a dividend. Accenture pays out 39.5% of its earnings in the form of a dividend. Accenture has increased its dividend for 8 consecutive years.
This is a summary of recent ratings for Accenture and GrubHub, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Accenture currently has a consensus price target of $176.39, indicating a potential upside of 12.92%. GrubHub has a consensus price target of $136.00, indicating a potential upside of 15.83%. Given GrubHub’s higher probable upside, analysts clearly believe GrubHub is more favorable than Accenture.
Volatility & Risk
Accenture has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, GrubHub has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.
Earnings & Valuation
This table compares Accenture and GrubHub’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Accenture||$41.60 billion||2.53||$4.06 billion||$6.74||23.18|
|GrubHub||$683.07 million||15.55||$98.98 million||$0.98||119.81|
Accenture has higher revenue and earnings than GrubHub. Accenture is trading at a lower price-to-earnings ratio than GrubHub, indicating that it is currently the more affordable of the two stocks.
This table compares Accenture and GrubHub’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
70.2% of Accenture shares are held by institutional investors. Comparatively, 100.0% of GrubHub shares are held by institutional investors. 0.2% of Accenture shares are held by company insiders. Comparatively, 1.6% of GrubHub shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Accenture beats GrubHub on 9 of the 17 factors compared between the two stocks.
Accenture plc provides consulting, technology, and outsourcing services worldwide. Its Communications, Media & Technology segment provides professional services that help clients accelerate and deliver digital transformation, and enhance business results through industry-specific solutions for communications, media, and high tech industries, as well as for software platforms. The company's Financial Services segment offers services that address profitability pressures, industry consolidation, regulatory changes, and the need to continually adapt to new digital technologies. This segment serves clients in banking, capital markets, and insurance industries. Its Health & Public Service segment provides research-based insights and offerings, including consulting services and digital solutions to help clients deliver social, economic, and health outcomes. This segment serves healthcare payers and providers, as well as government departments and agencies, public service organizations, educational institutions, and non-profit organizations. The company's Products segment helps clients enhance their performance in distribution, sales, and marketing; in research and development, and manufacturing; and in business functions, such as finance, human resources, procurement, and supply chain. This segment serves clients in consumer goods, retail, and travel services industries; automotive, freight and logistics, industrial and electrical equipment, consumer durable and heavy equipment, and construction and infrastructure management companies; and pharmaceutical, medical technology, and biotechnology companies. Its Resources segment enables clients to develop and implement strategies, improve operations, manage complex change initiatives, and integrate digital technologies. This segment serves clients in chemicals, energy, forest products, metals and mining, and utilities and related industries. Accenture plc was founded in 1989 and is based in Dublin, Ireland.
GrubHub Inc., together with its subsidiaries, provides an online and mobile platform for restaurant pick-up and delivery orders in the United States. The company connects approximately 80,000 local restaurants with diners in approximately 1,600 cities. It offers Grubhub, Seamless, and Eat24 mobile applications and mobile Websites for iPhone, Android, iPad, Apple Watch, and Apple TV devices; and operates Grubhub, Seamless, and Eat24 Websites through grubhub.com, seamless.com, and eat24.com. The company also provides corporate program that offers employees with various food and ordering options, including options for individual meals, group ordering, and catering, as well as proprietary tools that consolidate various food ordering into a single online account. In addition, it offers Allmenus.com and MenuPages.com, which provide an aggregated database of approximately 650,000 menus from restaurants in 50 states; Grubhub for Restaurants, a responsive Web application that can be accessed from computers and mobile devices, as well as Grubhub-provided tablets; point of sale (POS) integration, which allows restaurants to manage Grubhub orders and update their menus directly from their existing POS system; and Website design and hosting services for restaurants. The company was formerly known as GrubHub Seamless Inc. and changed its name to GrubHub Inc. in February 2014. GrubHub Inc. was founded in 1999 and is headquartered in Chicago, Illinois.
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