FTI Consulting (NYSE: FCN) and Huron Consulting Group (NASDAQ:HURN) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Earnings and Valuation
This table compares FTI Consulting and Huron Consulting Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FTI Consulting||$1.81 billion||1.06||$107.96 million||$2.32||21.99|
|Huron Consulting Group||$807.74 million||1.09||-$170.11 million||$2.15||18.28|
FTI Consulting has higher revenue and earnings than Huron Consulting Group. Huron Consulting Group is trading at a lower price-to-earnings ratio than FTI Consulting, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for FTI Consulting and Huron Consulting Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Huron Consulting Group||0||2||2||0||2.50|
FTI Consulting currently has a consensus price target of $38.00, suggesting a potential downside of 25.52%. Huron Consulting Group has a consensus price target of $48.00, suggesting a potential upside of 22.14%. Given Huron Consulting Group’s stronger consensus rating and higher probable upside, analysts plainly believe Huron Consulting Group is more favorable than FTI Consulting.
Volatility and Risk
FTI Consulting has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Huron Consulting Group has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.
Institutional & Insider Ownership
98.7% of FTI Consulting shares are held by institutional investors. Comparatively, 93.1% of Huron Consulting Group shares are held by institutional investors. 1.3% of FTI Consulting shares are held by company insiders. Comparatively, 3.1% of Huron Consulting Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares FTI Consulting and Huron Consulting Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Huron Consulting Group||-21.06%||8.43%||4.14%|
About FTI Consulting
FTI Consulting, Inc. is a business advisory company. The Company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications. The Company provides advice and services, such as restructuring (including bankruptcy), capital formation and indebtedness, interim business management, performance improvements, forensic accounting and litigation matters, international arbitrations, mergers and acquisitions (M&A), antitrust and competition matters, securities litigation, electronic discovery (or e-discovery), management and retrieval of electronically stored information (ESI), reputation management and strategic communications. The Company collaborates with Chief Financial Officers (CFOs) and their finance and accounting organizations and uses engagement tools to provide transformation services, manage risk, deliver business intelligence capabilities, and prepare for and execute events.
About Huron Consulting Group
Huron Consulting Group Inc., a professional services firm, provides advisory, technology, and analytic solutions in the United States and internationally. Its Healthcare segment provides advisory services in the areas of strategy, care transformation, financial and operational performance, technology and analytics, and leadership development to national and regional hospitals, integrated health systems, academic medical centers, community hospitals, and medical groups. The company's Education segment offers management consulting and technology solutions related to business and technology strategy, financial management, operational and organizational effectiveness, research administration, and regulatory compliance for higher education institutions and academic medical centers. Its Business Advisory segment provides enterprise performance management, enterprise resource planning, business intelligence and analytics, customer relationship management, and data management services; and capital advisory, transaction advisory, operational improvement, restructuring and turnaround, valuation, and dispute advisory services. This segment also provides strategic solutions in the areas of R&D and product strategy commercial segmentation, corporate and financial strategy, compliance and operations, reimbursement and access strategy, commercial contracting strategy, fair market value analysis, lifecycle management, litigation and investigations, government pricing and transparency reporting, auditing and monitoring, and business process improvement. The company serves healthcare, education, pharmaceutical and medical device, financial services, energy and utilities, retail, aerospace, automotive, technology, telecommunications, consumer products, governmental, metals and mining, engineering and construction, hospitality and gaming, logistics, and manufacturing industries. Huron Consulting Group Inc. was founded in 2002 and is headquartered in Chicago, Illinois.
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