Head-To-Head Comparison: Accenture (NYSE:ACN) versus Nomura Research Institute (OTCMKTS:NRILY)

Nomura Research Institute (OTCMKTS:NRILY) and Accenture (NYSE:ACN) are both large-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Institutional and Insider Ownership

75.1% of Accenture shares are held by institutional investors. 61.1% of Nomura Research Institute shares are held by company insiders. Comparatively, 0.0% of Accenture shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Nomura Research Institute and Accenture’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nomura Research Institute	2.41%	4.38%	2.08%
Accenture	10.66%	26.47%	12.89%

Earnings and Valuation

This table compares Nomura Research Institute and Accenture”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomura Research Institute	$5.41 billion	3.28	$100.70 million	$0.23	137.39
Accenture	$73.10 billion	1.64	$7.68 billion	$12.52	14.30

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nomura Research Institute and Accenture, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nomura Research Institute	1	1	0	1	2.33
Accenture	1	16	10	0	2.33

Accenture has a consensus target price of $200.07, indicating a potential upside of 11.79%. Given Accenture’s higher possible upside, analysts plainly believe Accenture is more favorable than Nomura Research Institute.

Risk & Volatility

Nomura Research Institute has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Dividends

Nomura Research Institute pays an annual dividend of $0.31 per share and has a dividend yield of 1.0%. Accenture pays an annual dividend of $6.52 per share and has a dividend yield of 3.6%. Nomura Research Institute pays out 134.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Accenture pays out 52.1% of its earnings in the form of a dividend. Accenture has raised its dividend for 20 consecutive years. Accenture is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Accenture beats Nomura Research Institute on 13 of the 17 factors compared between the two stocks.

About Nomura Research Institute

Nomura Research Institute, Ltd. provides consulting, financial information technology (IT) solution, industrial IT solution, and IT platform services in Japan and internationally. Its Consulting segment offers management, operational, and system consulting services for enterprises and government agencies. This segment also offers research, future projections, and recommendations to society, economics, business, technology, etc. The company's Financial IT Solutions segment provides system consulting, development, and management solutions, as well as shared online and BPO services for the financial institutions, including the securities, insurance, banking, asset management, and other financial sectors. Its Industrial IT Solutions segment offers system consulting, development, and management solutions, as well as shared online services primarily for the distribution, manufacturing, service, and public sectors. The company's IT Platform Services segment engages in the data center operation activities and construction of IT platforms and networks to the Financial IT and Industrial IT Solutions segments, as well as provides IT platform solutions and information security services to external clients. This segment is also involved in the research related to advance IT, etc. The company was founded in 1965 and is headquartered in Tokyo, Japan.

About Accenture

Accenture plc, a professional services company, provides strategy and consulting, industry X, song, and technology and operation services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, software and quality engineering, data management; intelligent automation comprising robotic process automation, natural language processing, and virtual agents; and application management services, as well as software engineering services; strategy and consulting services; data and analytics strategy, data discovery and augmentation, data management and beyond, data democratization, and industrialized solutions comprising turnkey analytics and artificial intelligence (AI) solutions; metaverse; and sustainability services. It also provides change management, HR transformation and delivery, organization strategy and design, talent strategy and development, and leadership and culture services; digital commerce; infrastructure services, including cloud infrastructure managed, cloud and data center, network, digital workplace, database platforms, service management, and cloud and infrastructure security services; data-enabled operating models; technology consulting and AI services; and technology consulting services. In addition, the company offers engineering and R&D digitization, smart connected products, product as-a-service enablement, capital projects, intelligent asset management, digital industrial workforce, and autonomous robotic systems; business process outsourcing; and services related to technology innovation. Further, it provides cloud, ecosystem, marketing, security, supply chain management, zero-based transformation, customer experience, finance consulting, mergers and acquisitions, and sustainability services. The company has a collaboration with Salesforce, Inc. to develop Salesforce Life Sciences Cloud. The company was founded in 1951 and is based in Dublin, Ireland.