Reviewing Zillow Group (NASDAQ:ZG) and Accenture (NASDAQ:ACN)

Zillow Group (NASDAQ:ZG) and Accenture (NYSE:ACN) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Zillow Group and Accenture, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group 3 6 8 0 2.29
Accenture 0 5 11 0 2.69

Zillow Group presently has a consensus target price of $46.65, indicating a potential upside of 36.43%. Accenture has a consensus target price of $193.47, indicating a potential upside of 0.34%. Given Zillow Group’s higher possible upside, equities research analysts clearly believe Zillow Group is more favorable than Accenture.

Profitability

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

Net Margins Return on Equity Return on Assets
Zillow Group -13.49% -5.12% -3.77%
Accenture 10.93% 36.24% 17.55%

Institutional & Insider Ownership

24.3% of Zillow Group shares are owned by institutional investors. Comparatively, 69.8% of Accenture shares are owned by institutional investors. 20.9% of Zillow Group shares are owned by insiders. Comparatively, 0.2% of Accenture shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Zillow Group and Accenture’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zillow Group $1.33 billion 5.30 -$119.86 million ($0.26) -131.50
Accenture $41.60 billion 3.11 $4.06 billion $6.74 28.61

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

Risk & Volatility

Zillow Group has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Dividends

Accenture pays an annual dividend of $2.92 per share and has a dividend yield of 1.5%. Zillow Group 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.

Summary

Accenture beats Zillow Group on 13 of the 17 factors compared between the two stocks.

About Zillow Group

Zillow Group, Inc. operates real estate and home-related brands on mobile and the Web in the United States. The company offers a portfolio of brands and products to empowering consumers with unparalleled data, inspiration, and knowledge around homes and connecting them with real estate professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company's portfolio of consumer brands comprise real estate and rental marketplaces, such as Zillow, Trulia, Mortgage Lenders of America, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and Out East. It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed. In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.

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.

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