Emerald Expositions Events (NYSE:EEX) and Accenture (NYSE:ACN) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Dividends

Emerald Expositions Events pays an annual dividend of $0.30 per share and has a dividend yield of 2.7%. Accenture pays an annual dividend of $2.92 per share and has a dividend yield of 1.6%. Emerald Expositions Events pays out 22.6% of its earnings in the form of a dividend. Accenture pays out 43.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Accenture has increased its dividend for 9 consecutive years. Emerald Expositions Events is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Emerald Expositions Events has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

35.6% of Emerald Expositions Events shares are owned by institutional investors. Comparatively, 69.2% of Accenture shares are owned by institutional investors. 3.2% of Emerald Expositions Events shares are owned by company insiders. Comparatively, 0.2% of Accenture shares are owned by company 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 & Valuation

This table compares Emerald Expositions Events and Accenture’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emerald Expositions Events $380.70 million 2.07 -$25.10 million $1.33 8.26
Accenture $41.60 billion 3.01 $4.06 billion $6.74 27.61

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

Analyst Recommendations

This is a summary of recent ratings for Emerald Expositions Events and Accenture, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emerald Expositions Events 2 6 0 0 1.75
Accenture 1 6 12 0 2.58

Emerald Expositions Events currently has a consensus target price of $14.17, suggesting a potential upside of 28.90%. Accenture has a consensus target price of $189.50, suggesting a potential upside of 1.82%. Given Emerald Expositions Events’ higher probable upside, analysts clearly believe Emerald Expositions Events is more favorable than Accenture.

Profitability

This table compares Emerald Expositions Events and Accenture’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emerald Expositions Events -9.76% 11.55% 5.46%
Accenture 10.52% 38.57% 18.06%

Summary

Accenture beats Emerald Expositions Events on 13 of the 17 factors compared between the two stocks.

About Emerald Expositions Events

Emerald Expositions Events, Inc. operates business-to-business (B2B) trade shows in the United States. The company operates trade shows in various industry sectors, including gift, home, and general merchandise; sports; design and construction; technology; jewelry; and others, such as photography, food, healthcare, industrials, and military. It also operates events across various formats comprising B2B conferences, hosted buyer events, B2C events, summits, awards, and luxury private sales; and provides print publications and digital media products. The company operates 55 trade shows and various other face-to-face events. Emerald Expositions Events, Inc. was founded in 2013 and is headquartered in San Juan Capistrano, California.

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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