Financial Analysis: The Hackett Group (NASDAQ:HCKT) vs. Its Competitors

The Hackett Group (NASDAQ: HCKT) is one of 26 public companies in the “Management consulting services” industry, but how does it compare to its rivals? We will compare The Hackett Group to related companies based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, risk, dividends and valuation.

Analyst Recommendations

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This is a summary of current ratings and target prices for The Hackett Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Hackett Group 0 1 3 0 2.75
The Hackett Group Competitors 90 312 484 15 2.47

The Hackett Group presently has a consensus price target of $19.25, indicating a potential upside of 16.67%. As a group, “Management consulting services” companies have a potential upside of 0.07%. Given The Hackett Group’s stronger consensus rating and higher probable upside, analysts clearly believe The Hackett Group is more favorable than its rivals.

Earnings & Valuation

This table compares The Hackett Group and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
The Hackett Group $285.86 million $27.35 million 21.71
The Hackett Group Competitors $978.14 million $63.48 million 16.35

The Hackett Group’s rivals have higher revenue and earnings than The Hackett Group. The Hackett Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

77.3% of The Hackett Group shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Management consulting services” companies are owned by institutional investors. 18.8% of The Hackett Group shares are owned by insiders. Comparatively, 10.4% of shares of all “Management consulting services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

The Hackett Group pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. The Hackett Group pays out 39.5% of its earnings in the form of a dividend. As a group, “Management consulting services” companies pay a dividend yield of 1.3% and pay out 31.7% of their earnings in the form of a dividend.

Risk & Volatility

The Hackett Group has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, The Hackett Group’s rivals have a beta of 0.77, indicating that their average stock price is 23% less volatile than the S&P 500.

Profitability

This table compares The Hackett Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Hackett Group 9.57% 24.81% 13.88%
The Hackett Group Competitors -217.69% -16.66% -6.40%

Summary

The Hackett Group beats its rivals on 11 of the 15 factors compared.

About The Hackett Group

The Hackett Group, Inc. is an advisory and technology consulting company. The Company’s services include business transformation, enterprise performance management, working capital management and global business services. The Company is engaged in providing business and technology consulting services. It focuses on business strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including Oracle Enterprise Performance Management (EPM) and SAP practices. It offers a range of services, including executive advisory programs, benchmarking, business transformation and technology consulting services. Its advisory programs include a mix of the deliverables, such as Best Practice Intelligence Center, Best Practice Accelerators, Advisor Inquiry, Best Practice Research and Peer Interaction. Its Business Transformation programs help clients develop a coordinated strategy for achieving performance improvements across the enterprise.

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