What is Ernst and Young’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Ernst and Young because it is a private company. However, Accenture (NYSE: ACN), Cognizant (NASDAQ: CTSH), and FTI Consulting (NYSE: FCN) are accounting stocks that traders can invest in.
Ernst & Young (EY) is a prominent global professional services firm. It’s one of the “Big Four” accounting firms alongside Deloitte, PricewaterhouseCoopers (PwC) and KPMG. Their offices are in most major cities worldwide and on every continent.
Unfortunately, none of the Big Four trades on the stock market for many reasons. We’ll see why later in the article. Fortunately, some smaller professional services and consulting firms trade on stock exchanges.
Their services overlap with EY, particularly in consulting and advisory areas, but they are not direct competitors in core audit and tax services. You must know everything about EY, the Big Four, and their publicly traded competitors.
Table of Contents
Ernst and Young Introduction (No Stock Symbol)
Ernst & Young is a British firm formed by merging two separate accounting firms founded by Alwin C Ernst in 1903 and Arthur Young in 1906. Both companies were known for their innovative approaches to accounting and financial services.
Although the founders never met, their firms merged in 1989, creating Ernst & Young as it is known today. Thanks to the merger, Ernst & Young expanded its global reach. The firm grew in the following years thanks to more mergers and acquisitions (Grant Thornton and The Parthenon Group).
In 2013, the company rebranded itself as EY. As a result, This was part of a broader strategy to mod the firm’s image. At the same time, it expanded its services to include cutting-edge areas such as cybersecurity, digital transformation, and AI. These sectors are growing rapidly, and EY wanted a piece of the pie. As a result, can you trade Ernst and Young stock?
EY Growth
How did EY grow so fast beyond simply an accounting firm? The company also provides consulting, strategy, transactions, and tax services. The firm operates as a network of member firms structured as separate legal entities, which allows it to maintain a strong local presence while benefiting from global resources.
It is in over 150 countries and is a trusted partner for many multinational corporations. If you could trade Ernst and Young stock, it would make a great addition to any portfolio.
Today, successful firms adapt to the changing technological and social environment. EY can provide cutting-edge solutions because it keeps up with all the technological advancements and innovations. The other “Big Four” members mentioned earlier are doing the same and are just as successful.
The ‘’Big Four’’
The Big Four accounting and consulting firms are Deloitte, PricewaterhouseCoopers (PwC) and KPMG. They are the world’s four largest professional services networks by revenue and workforce size. In the UK, they audit 96% of FTSE 250 companies and 99.7% of the S&P 500 companies in the US.
As far as revenue and market share go, they are very competitive. Here are their stats for 2023.
- Deloitte: $64.9B in revenue and 22.7% of S&P 500 audit fees
- PwC: $53.1B and 35.7%
- EY: $49.9B and 27.6%
- KPMG: $36.4B and 13.7%
Ernst and Young stock would be a good investment if it were public.
Ernst and Young Stock and IPO
Unfortunately for investors, the Big Four aren’t listed on the stock market for several reasons.
- Partnership structure: These firms are partnerships owned by their senior-level employees (partners). This ownership model allows them to focus on increasing the annual income of partners rather than long-term wealth for potential shareholders.
- Privacy and control: The Big Four can maintain greater control over their operations and keep financial information confidential by remaining private.
- Regulatory challenges: Going public would require these firms to meet complex regulatory requirements, which may be difficult given their global scale and the nature of their services.
- Conflict of interest: As auditors of many public companies, being publicly traded themselves could potentially create conflicts of interest.
While it’s theoretically possible for these firms to restructure and go public with an IPO, it would be very complicated, go against their current business model, and potentially compromise their ability to serve clients effectively.
As a result, the Big Four accounting firms are likely to remain privately held for the foreseeable future. Therefore, there is no treading Ernst and Young stock.
Ernst and Young Stock Competitors
If you’re disappointed that you can’t trade Ernst and Young stock or other industry leaders because they are private, here are some companies with a similar business structure that are available on the stock market.
Since they aren’t primarily accounting companies and do not audit public companies on major stock exchanges (NYSE or NASDAQ), they can trade on the stock market.
Instead, the companies below offer a range of services:
- Management consulting
- Technology services
- Digital transformation
- Business strategy
- Outsourcing services
Below is a brief description of each company’s business dealings.
1. Accenture (NYSE: ACN)
We begin with Accenture, which provides various services and solutions in strategy, consulting, digital, technology, and operations.
The company has over 9000 clients (many Fortune 100 and 500 companies) across more than 120 countries. Here are the key areas of operations:
- Strategy & Consulting: Accenture works with C-suite executives and leaders to drive growth, enhance competitiveness, and implement operational improvements. Technology, data, analytics, AI, and sustainability capabilities support this service and aim to facilitate total enterprise reinvention.
- Technology: It is a leader in driving technological change, offering solutions in digital transformation, cloud services, cybersecurity, and data analytics. Accenture invests in emerging technologies like generative AI, blockchain, and quantum computing to stay ahead of industry trends.
- Operations: Accenture manages client business processes, including finance, procurement, supply chain, and human resources, through intelligent operations enabled by SynOps, a cloud-based platform that integrates data, processes, automation, and AI.
- Industry X: This service combines digital capabilities with engineering and manufacturing expertise to help clients innovate and transform their operations
In 2023, Accenture’s revenue hit a new high for the 10th consecutive year with $64B. Thanks to collaborations with leading technology firms and startups, its services are enhanced, and the industry recognizes them.
If Accenture doesn’t collaborate with a company, it acquires it. As of August 2024, it acquired 35 companies in 2024 alone for $5.2B. Keep an eye on Accenture as a great Ernst and Young stock alternative.
2. Cognizant (NASDAQ: CTSH)
Cognizant is next on the Ernst and Young stock alternative list. They specialize in IT services and consulting. Its model focuses on offshore software R&D and outsourcing for specific industries (banking & financial services, healthcare, manufacturing and retail).
It focuses on unlocking new businesses thanks to AI, IoT, and digital engineering innovation to help clients navigate the digital era. Cognizant operates numerous development centers worldwide, with a significant presence in India.
In 2023, Cognizant reported revenues of $19.4B, below its 2022 record-breaking year. The company has grown much slower than in the 2010s, reflected in its stock performance and investor confidence. This industry is very competitive; once a company falls behind, it becomes hard to catch up to its peers.
Cognizant has been working to shift its focus towards digital services and AI, but this transition takes time and investment. As a result, this can impact its short-term financial and stock market performance.
3. Capgemini (Euronext: CAP or OTC: CGEMY)
Capgemini is a French multinational corporation that specializes in IT services and consulting. It trades on the Euronext in Europe and the OTC market in the US. The company helps organizations in over 50 countries accelerate their transition to a digital and sustainable world. It leverages AI, cloud, and data to address its clients’ needs. It has four key business units:
- Capgemini Invent: This is the design and consulting brand of the Capgemini Group. It focuses on innovation and digital transformation, integrating teams from acquisitions such as Frog Design and Fahrenheit 212.
- Capgemini Engineering: This division focuses on engineering and R&D services, providing solutions that drive innovation and efficiency in product development and manufacturing processes.
- Sogeti: Sogeti specializes in technology and engineering professional services, offering IT consulting and managed services.
- Capgemini’s Quantum Lab: Established in collaboration with IBM, this lab focuses on developing quantum computing applications and is part of Capgemini’s efforts to remain at the forefront of technological advancements.
Like Accenture, Capgemini has a history of strategic acquisitions (Altran, LiquidHub, Syniti, and others) to bolster its capabilities and expand its global footprint. Since the pandemic, the company’s stock has performed relatively well but has struggled to grow organically and YoY.
In 2024, Capgemini is anticipating a decline but is focusing on the North American market to secure new deals. It remains a risky investment until the company can find new income sources. However, it’s still a good Ernst and Young stock alternative.
4. FTI Consulting (NYSE: FCN)
We conclude this list with FTI Consulting. It is the only company on this list trading near its all-time high stock price (up 18% in 1 year and 108% in 5 years).
FTI is a global business advisory firm dedicated to helping organizations manage change, mitigate risk, and resolve disputes. It provides expert consulting services in the following fields:
- Corporate Finance & Restructuring: Focuses on strategic, operational, financial, transactional, and capital needs of clients worldwide. Services include corporate restructuring, bankruptcy assistance, business transformation, and mergers and acquisitions advisory.
- Forensic and Litigation Consulting: Provides multidisciplinary services related to risk advisory, investigations, and disputes. Expertise includes anti-corruption investigations, cybersecurity, data analytics, and specialized industry knowledge in insurance, construction, and healthcare.
- Economic Consulting: Offers economic analysis, expert testimony in legal and regulatory proceedings, and strategic decision-making support.
- Technology: Provides e-discovery, information governance, privacy, and security solutions to corporations and law firms.
- Strategic Communications: Designs and executes communications strategies to manage financial, regulatory, and reputational challenges.
Like Accenture, FTI isn’t focused solely on the IT side of consulting. Its services are very diversified. Furthermore, the company has received numerous awards and recognitions.
It has a prestigious client base (83 top Fortune Global 100 companies, 98 of the top 100 global law firms, 64 top private equity firms, and 38 of the world’s bank holding companies). FTI continues to grow and exceed many investors’ and analysts’ expectations.
Final Thoughts: Ernst and Young Stock
Ernst and Young (EY) is part of the global consulting, accounting, and auditing elite. However, the company is evolving past its core businesses, including cybersecurity, digital transformation, and AI, in its services. Along with the Big Four, it audits almost every firm traded in the S&P 500.
Because of this, these companies have many conflicts of interest, preventing them from trading publicly. You can’t trade the Big Four. As a result, there is no Ernst and Young stock. However, other companies, such as Accenture and FTI Consulting, provide similar services and perform well.
If you want to learn more about profiting from the stock market, head to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.
Frequently Asked Questions
EY is a very attractive company for investors, but unfortunately, it remains privately owned.
EY, Deloitte, PricewaterhouseCoopers (PwC), and KPMG are part of the Big Four. They are all private companies.
If the Big Four traded publicly, they would have several conflicts of interest with the S&P 500 companies they are auditing and privacy and control concerns.
