Reviewing Accenture (ACN) and Asiainfo-Linkage (ASIA)

Accenture (NYSE: ACN) and Asiainfo-Linkage (NASDAQ:ASIA) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Accenture and Asiainfo-Linkage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accenture 9.43% 41.79% 17.84%
Asiainfo-Linkage N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings for Accenture and Asiainfo-Linkage, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accenture 2 9 11 0 2.41
Asiainfo-Linkage 0 0 0 0 N/A

Accenture currently has a consensus target price of $155.86, suggesting a potential downside of 3.45%.

Institutional and Insider Ownership

75.4% of Accenture shares are held by institutional investors. 0.2% of Accenture shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Accenture and Asiainfo-Linkage’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 2.79 $3.45 billion $5.64 28.62
Asiainfo-Linkage N/A N/A N/A ($3.37) N/A

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

Dividends

Accenture pays an annual dividend of $2.66 per share and has a dividend yield of 1.6%. Asiainfo-Linkage does not pay a dividend. Accenture pays out 47.2% of its earnings in the form of a dividend. Asiainfo-Linkage has raised its dividend for 8 consecutive years.

Summary

Accenture beats Asiainfo-Linkage on 9 of the 11 factors compared between the two stocks.

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.

Asiainfo-Linkage Company Profile

AsiaInfo-Linkage, Inc. (AsiaInfo) is a provider of telecommunications software solutions and information technology (IT), related services in the People’s Republic of China. The Company’s software and services enable its customers to build, maintain, operate, manage and improve their communications infrastructure. Its provides software solutions to telecommunications carriers and cable television operators in the People’s Republic of China, as well as telecommunications operators in other countries, including business operation support systems, including billing, customer relationship management and partnership relationship management applications. In January 2014, the Company announced the completion of the merger, pursuant to which Skipper Acquisition Corporation merged with and into the Company, with the Company continuing as the surviving company after the merger as a wholly owned subsidiary of Skipper Limited.

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