Accenture (NYSE: ACN) and Radware (NASDAQ:RDWR) 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, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Dividends
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Accenture pays an annual dividend of $2.66 per share and has a dividend yield of 1.7%. Radware does not pay a dividend. Accenture pays out 45.0% of its earnings in the form of a dividend. Accenture has increased its dividend for 8 consecutive years.
Analyst Ratings
This is a summary of current recommendations for Accenture and Radware, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Accenture | 1 | 9 | 13 | 0 | 2.52 |
| Radware | 0 | 0 | 5 | 0 | 3.00 |
Accenture presently has a consensus target price of $160.70, suggesting a potential downside of 0.16%. Radware has a consensus target price of $23.60, suggesting a potential downside of 4.72%. Given Accenture’s higher possible upside, research analysts plainly believe Accenture is more favorable than Radware.
Valuation & Earnings
This table compares Accenture and Radware’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 | $5.91 | 27.24 |
| Radware | $211.37 million | 5.22 | -$7.49 million | ($0.12) | -206.42 |
Accenture has higher revenue and earnings than Radware. Radware is trading at a lower price-to-earnings ratio than Accenture, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
73.7% of Accenture shares are held by institutional investors. Comparatively, 62.5% of Radware shares are held by institutional investors. 0.2% of Accenture shares are held by company insiders. Comparatively, 21.6% of Radware shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Accenture and Radware’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Accenture | 9.18% | 41.50% | 17.96% |
| Radware | -2.03% | -1.21% | -0.82% |
Volatility and Risk
Accenture has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Radware has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
Summary
Accenture beats Radware on 13 of the 17 factors compared between the two stocks.
Accenture Company Profile
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.
Radware Company Profile
Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in virtual, cloud, and software defined data centers worldwide. The company offers application and network security solutions, such as DefensePro, a real-time network attack prevention device; AppWall, a Web application firewall; and DefenseFlow, a cyber-command and control application. It also provides cloud-based emergency response team, attack mitigation, and firewall services; and subscription-based security update related to latest threats, and fraud and phishing attacks. In addition, the company offers application delivery solutions comprising Alteon D Line, an application delivery controller/load balancer for Web, cloud, and mobile based applications; LinkProof NG, a multi-homing and enterprise gateway solution for connectivity of enterprise and cloud-based applications; and FastView, a Web performance optimization and acceleration for end-user devices and browsers. Additionally, it offers APSolute Vision, a management and monitoring tool for company's application delivery and cyber security solutions; application performance monitoring to detect application performance issues; and vDirect, service orchestration and automation engine designed for software-defined data centers and clouds. The company also offers cloud DDoS protection, cloud malware protection, content delivery network, and cloud Web acceleration services, as well as support and maintenance services. The company sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. Radware Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.