Seek Returns logo

ACN vs. EA: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ACN and EA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ACN’s market capitalization of 190.80 billion USD is substantially larger than EA’s 38.96 billion USD, indicating a significant difference in their market valuations.

ACN’s beta of 1.33 points to significantly higher volatility compared to EA (beta: 0.71), suggesting ACN has greater potential for both gains and losses relative to market movements.

SymbolACNEA
Company NameAccenture plcElectronic Arts Inc.
CountryIEUS
SectorTechnologyTechnology
IndustryInformation Technology ServicesElectronic Gaming & Multimedia
CEOJulie T. Spellman SweetAndrew Wilson
Price304.78 USD155.37 USD
Market Cap190.80 billion USD38.96 billion USD
Beta1.330.71
ExchangeNYSENASDAQ
IPO DateJuly 19, 2001September 20, 1989
ADRNoNo

Historical Performance

This chart compares the performance of ACN and EA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ACN vs. EA: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ACN

27.11%

Information Technology Services Industry

Max
47.24%
Q3
23.27%
Median
12.85%
Q1
2.22%
Min
-26.63%

In the upper quartile for the Information Technology Services industry, ACN’s Return on Equity of 27.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

EA

15.68%

Electronic Gaming & Multimedia Industry

Max
22.45%
Q3
13.61%
Median
-5.53%
Q1
-70.13%
Min
-121.78%

In the upper quartile for the Electronic Gaming & Multimedia industry, EA’s Return on Equity of 15.68% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ACN vs. EA: A comparison of their ROE against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Return on Invested Capital

ACN

17.83%

Information Technology Services Industry

Max
28.29%
Q3
13.19%
Median
7.24%
Q1
0.23%
Min
-18.82%

In the upper quartile for the Information Technology Services industry, ACN’s Return on Invested Capital of 17.83% signifies a highly effective use of its capital to generate profits when compared to its peers.

EA

11.36%

Electronic Gaming & Multimedia Industry

Max
17.62%
Q3
11.24%
Median
1.98%
Q1
-22.67%
Min
-64.64%

In the upper quartile for the Electronic Gaming & Multimedia industry, EA’s Return on Invested Capital of 11.36% signifies a highly effective use of its capital to generate profits when compared to its peers.

ACN vs. EA: A comparison of their ROIC against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Net Profit Margin

ACN

11.61%

Information Technology Services Industry

Max
20.47%
Q3
11.62%
Median
5.97%
Q1
1.89%
Min
-4.62%

ACN’s Net Profit Margin of 11.61% is aligned with the median group of its peers in the Information Technology Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

EA

15.03%

Electronic Gaming & Multimedia Industry

Max
28.20%
Q3
16.08%
Median
10.20%
Q1
-7.35%
Min
-22.94%

EA’s Net Profit Margin of 15.03% is aligned with the median group of its peers in the Electronic Gaming & Multimedia industry. This indicates its ability to convert revenue into profit is typical for the sector.

ACN vs. EA: A comparison of their Net Profit Margin against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Operating Profit Margin

ACN

15.38%

Information Technology Services Industry

Max
29.42%
Q3
14.75%
Median
8.92%
Q1
2.62%
Min
-11.92%

An Operating Profit Margin of 15.38% places ACN in the upper quartile for the Information Technology Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

EA

20.45%

Electronic Gaming & Multimedia Industry

Max
28.10%
Q3
17.15%
Median
5.89%
Q1
-19.43%
Min
-26.48%

An Operating Profit Margin of 20.45% places EA in the upper quartile for the Electronic Gaming & Multimedia industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ACN vs. EA: A comparison of their Operating Margin against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Profitability at a Glance

SymbolACNEA
Return on Equity (TTM)27.11%15.68%
Return on Assets (TTM)12.55%9.06%
Return on Invested Capital (TTM)17.83%11.36%
Net Profit Margin (TTM)11.61%15.03%
Operating Profit Margin (TTM)15.38%20.45%
Gross Profit Margin (TTM)32.07%79.08%

Financial Strength

Current Ratio

ACN

1.46

Information Technology Services Industry

Max
3.41
Q3
2.37
Median
1.58
Q1
1.20
Min
0.00

ACN’s Current Ratio of 1.46 aligns with the median group of the Information Technology Services industry, indicating that its short-term liquidity is in line with its sector peers.

EA

0.95

Electronic Gaming & Multimedia Industry

Max
3.22
Q3
2.77
Median
1.19
Q1
0.82
Min
0.01

EA’s Current Ratio of 0.95 aligns with the median group of the Electronic Gaming & Multimedia industry, indicating that its short-term liquidity is in line with its sector peers.

ACN vs. EA: A comparison of their Current Ratio against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Debt-to-Equity Ratio

ACN

0.19

Information Technology Services Industry

Max
2.63
Q3
1.16
Median
0.48
Q1
0.09
Min
0.01

ACN’s Debt-to-Equity Ratio of 0.19 is typical for the Information Technology Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

EA

0.31

Electronic Gaming & Multimedia Industry

Max
1.92
Q3
1.14
Median
0.31
Q1
0.17
Min
0.09

EA’s Debt-to-Equity Ratio of 0.31 is typical for the Electronic Gaming & Multimedia industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ACN vs. EA: A comparison of their D/E Ratio against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Interest Coverage Ratio

ACN

210.82

Information Technology Services Industry

Max
17.52
Q3
10.04
Median
4.66
Q1
0.80
Min
-10.50

With an Interest Coverage Ratio of 210.82, ACN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Information Technology Services industry. This stems from either robust earnings or a conservative debt load.

EA

20.61

Electronic Gaming & Multimedia Industry

Max
20.61
Q3
4.69
Median
-1.31
Q1
-20.23
Min
-25.09

EA’s Interest Coverage Ratio of 20.61 is in the upper quartile for the Electronic Gaming & Multimedia industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ACN vs. EA: A comparison of their Interest Coverage against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Financial Strength at a Glance

SymbolACNEA
Current Ratio (TTM)1.460.95
Quick Ratio (TTM)1.460.95
Debt-to-Equity Ratio (TTM)0.190.31
Debt-to-Asset Ratio (TTM)0.090.16
Net Debt-to-EBITDA Ratio (TTM)-0.32-0.10
Interest Coverage Ratio (TTM)210.8220.61

Growth

The following charts compare key year-over-year (YoY) growth metrics for ACN and EA. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ACN vs. EA: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ACN vs. EA: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ACN vs. EA: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ACN

1.88%

Information Technology Services Industry

Max
16.57%
Q3
1.39%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.88%, ACN offers a more attractive income stream than most of its peers in the Information Technology Services industry, signaling a strong commitment to shareholder returns.

EA

0.49%

Electronic Gaming & Multimedia Industry

Max
8.44%
Q3
0.36%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.49%, EA offers a more attractive income stream than most of its peers in the Electronic Gaming & Multimedia industry, signaling a strong commitment to shareholder returns.

ACN vs. EA: A comparison of their Dividend Yield against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Dividend Payout Ratio

ACN

45.10%

Information Technology Services Industry

Max
112.81%
Q3
20.98%
Median
0.00%
Q1
0.00%
Min
0.00%

ACN’s Dividend Payout Ratio of 45.10% is in the upper quartile for the Information Technology Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

EA

17.75%

Electronic Gaming & Multimedia Industry

Max
106.44%
Q3
13.31%
Median
0.00%
Q1
0.00%
Min
0.00%

EA’s Dividend Payout Ratio of 17.75% is in the upper quartile for the Electronic Gaming & Multimedia industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ACN vs. EA: A comparison of their Payout Ratio against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Dividend at a Glance

SymbolACNEA
Dividend Yield (TTM)1.88%0.49%
Dividend Payout Ratio (TTM)45.10%17.75%

Valuation

Price-to-Earnings Ratio

ACN

23.94

Information Technology Services Industry

Max
49.12
Q3
36.91
Median
24.84
Q1
15.88
Min
1.55

ACN’s P/E Ratio of 23.94 is within the middle range for the Information Technology Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

EA

36.31

Electronic Gaming & Multimedia Industry

Max
36.87
Q3
20.95
Median
12.73
Q1
7.31
Min
3.67

A P/E Ratio of 36.31 places EA in the upper quartile for the Electronic Gaming & Multimedia industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ACN vs. EA: A comparison of their P/E Ratio against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Forward P/E to Growth Ratio

ACN

2.73

Information Technology Services Industry

Max
5.35
Q3
3.79
Median
2.23
Q1
1.19
Min
0.03

ACN’s Forward PEG Ratio of 2.73 is within the middle range of its peers in the Information Technology Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

EA

1.95

Electronic Gaming & Multimedia Industry

Max
2.97
Q3
2.24
Median
1.87
Q1
1.76
Min
1.76

EA’s Forward PEG Ratio of 1.95 is within the middle range of its peers in the Electronic Gaming & Multimedia industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ACN vs. EA: A comparison of their Forward PEG Ratio against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Price-to-Sales Ratio

ACN

2.79

Information Technology Services Industry

Max
8.15
Q3
4.17
Median
2.14
Q1
1.00
Min
0.10

ACN’s P/S Ratio of 2.79 aligns with the market consensus for the Information Technology Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

EA

5.23

Electronic Gaming & Multimedia Industry

Max
7.60
Q3
6.29
Median
3.76
Q1
1.02
Min
0.66

EA’s P/S Ratio of 5.23 aligns with the market consensus for the Electronic Gaming & Multimedia industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ACN vs. EA: A comparison of their P/S Ratio against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Price-to-Book Ratio

ACN

6.23

Information Technology Services Industry

Max
11.78
Q3
6.14
Median
3.23
Q1
1.97
Min
0.42

The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.

EA

6.37

Electronic Gaming & Multimedia Industry

Max
6.47
Q3
6.47
Median
4.48
Q1
1.29
Min
0.36

The P/B Ratio is often not a primary valuation metric for the Electronic Gaming & Multimedia industry.

ACN vs. EA: A comparison of their P/B Ratio against their respective Information Technology Services and Electronic Gaming & Multimedia industry benchmarks.

Valuation at a Glance

SymbolACNEA
Price-to-Earnings Ratio (P/E, TTM)23.9436.31
Forward PEG Ratio (TTM)2.731.95
Price-to-Sales Ratio (P/S, TTM)2.795.23
Price-to-Book Ratio (P/B, TTM)6.236.37
Price-to-Free Cash Flow Ratio (P/FCF, TTM)60.0820.97
EV-to-EBITDA (TTM)15.8320.86
EV-to-Sales (TTM)2.735.20