Farfetch (NYSE:FTCH) vs. Accenture (ACN) Head to Head Analysis

Accenture (NYSE:ACN) and Farfetch (NYSE:FTCH) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Dividends

Accenture pays an annual dividend of $2.92 per share and has a dividend yield of 1.7%. Farfetch does not pay a dividend. Accenture pays out 43.3% of its earnings in the form of a dividend. Accenture has raised its dividend for 9 consecutive years.

Profitability

This table compares Accenture and Farfetch’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accenture 10.52% 38.57% 18.06%
Farfetch N/A N/A N/A

Earnings & Valuation

This table compares Accenture and Farfetch’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accenture $41.60 billion 2.82 $4.06 billion $6.74 25.86
Farfetch $602.38 million 11.92 -$155.57 million ($0.59) -40.58

Accenture has higher revenue and earnings than Farfetch. Farfetch is trading at a lower price-to-earnings ratio than Accenture, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Accenture and Farfetch, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accenture 1 7 12 0 2.55
Farfetch 1 1 9 0 2.73

Accenture presently has a consensus target price of $184.00, indicating a potential upside of 5.57%. Farfetch has a consensus target price of $28.00, indicating a potential upside of 16.96%. Given Farfetch’s stronger consensus rating and higher possible upside, analysts plainly believe Farfetch is more favorable than Accenture.

Institutional and Insider Ownership

70.2% of Accenture shares are held by institutional investors. Comparatively, 42.1% of Farfetch shares are held by institutional investors. 0.2% of Accenture shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Accenture beats Farfetch on 12 of the 16 factors compared between the two stocks.

About Accenture

Accenture plc provides consulting, technology, and outsourcing services in Ireland and internationally. Its Communications, Media & Technology segment provides professional services that help clients accelerate and deliver digital transformation, develop industry-specific solutions, and enhance efficiencies and business results for communications, media, high tech, software, and platform companies. 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 for 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 for 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 in chemicals, energy, forest products, metals and mining, and utilities and related industries to develop and implement strategies, improve operations, manage complex change initiatives, and integrate digital technologies. Accenture plc has a strategic alliance with Quantexa and nCino, Inc. Accenture plc was founded in 1989 and is based in Dublin, Ireland.

About Farfetch

Farfetch Ltd. engages in the retail of fashion and luxury goods. It offers womenswear, menswear, kidswear, vintage, fine watches, and fine jewelry. The company was founded by José Manuel Ferreira Neves in 2007 and launched in 2008 and is headquartered in London, the United Kingdom.

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