Comparing Accenture (NYSE:ACN) and The Hackett Group (NASDAQ:HCKT)

The Hackett Group (NASDAQ:HCKT) and Accenture (NYSE:ACN) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Volatility and Risk

The Hackett Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Accenture has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

78.1% of The Hackett Group shares are owned by institutional investors. Comparatively, 75.1% of Accenture shares are owned by institutional investors. 11.8% of The Hackett Group shares are owned by insiders. Comparatively, 0.0% of Accenture shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

The Hackett Group pays an annual dividend of $0.48 per share and has a dividend yield of 3.6%. Accenture pays an annual dividend of $6.84 per share and has a dividend yield of 2.6%. The Hackett Group pays out 68.6% of its earnings in the form of a dividend. Accenture pays out 50.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. The Hackett Group has raised its dividend for 1 consecutive years and Accenture has raised its dividend for 20 consecutive years.

Earnings & Valuation

This table compares The Hackett Group and Accenture”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hackett Group	$305.63 million	1.09	$12.94 million	$0.70	19.14
Accenture	$74.18 billion	2.06	$8.37 billion	$13.56	19.09

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

Analyst Ratings

This is a summary of current ratings for The Hackett Group and Accenture, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hackett Group	1	1	1	0	2.00
Accenture	0	17	10	0	2.37

The Hackett Group presently has a consensus price target of $16.50, indicating a potential upside of 23.13%. Accenture has a consensus price target of $221.07, indicating a potential downside of 14.58%. Given The Hackett Group’s higher probable upside, equities research analysts plainly believe The Hackett Group is more favorable than Accenture.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Hackett Group	6.29%	38.40%	12.57%
Accenture	11.28%	26.53%	12.58%

Summary

Accenture beats The Hackett Group on 12 of the 17 factors compared between the two stocks.

About The Hackett Group

The Hackett Group, Inc. is a global business and technology consulting firm that helps organizations improve performance, transform operations and adopt digital technologies. Its services are informed by proprietary research, benchmarking data and best-practice insights across major corporate functions. The company advises clients on finance, human resources, procurement, information technology, supply chain management and other enterprise operations. Its offerings include benchmarking and performance studies, business transformation programs, enterprise performance management, technology consulting and implementation services.

About Accenture

Accenture plc is a global professional services company that helps businesses, governments and other organizations solve operational and technology challenges. Its work includes strategy and management consulting, digital transformation, systems integration and the design, implementation and management of technology solutions. The company serves clients across a broad range of industries and geographies. Its services span cloud computing, data and artificial intelligence, cybersecurity, software and platforms, business process operations, and digital marketing and customer experience.