The Hackett Group (HCKT) versus Its Peers Head to Head Comparison

The Hackett Group (NASDAQ:HCKT) is one of 273 public companies in the “IT Services” industry, but how does it compare to its peers? We will compare The Hackett Group to related companies based on the strength of its risk, analyst recommendations, profitability, earnings, valuation, institutional ownership and dividends.

Profitability

This table compares The Hackett Group and its peers’ 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%
The Hackett Group Competitors	-190.51%	-32.79%	-8.37%

Valuation and Earnings

This table compares The Hackett Group and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The Hackett Group	$283.67 million	$12.94 million	19.30
The Hackett Group Competitors	$3.51 billion	$223.00 million	-20.15

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

Analyst Ratings

This is a breakdown of current ratings for The Hackett Group and its peers, 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
The Hackett Group Competitors	2009	5684	9512	343	2.47

The Hackett Group currently has a consensus target price of $16.50, indicating a potential upside of 22.14%. As a group, “IT Services” companies have a potential upside of 23.61%. Given The Hackett Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe The Hackett Group has less favorable growth aspects than its peers.

Insider & Institutional Ownership

78.1% of The Hackett Group shares are held by institutional investors. Comparatively, 36.4% of shares of all “IT Services” companies are held by institutional investors. 11.8% of The Hackett Group shares are held by company insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

The Hackett Group has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, The Hackett Group’s peers have a beta of 2.16, suggesting that their average share price is 116% more volatile than the S&P 500.

Dividends

The Hackett Group pays an annual dividend of $0.48 per share and has a dividend yield of 3.6%. The Hackett Group pays out 68.6% of its earnings in the form of a dividend. As a group, “IT Services” companies pay a dividend yield of 2.3% and pay out 71.0% of their earnings in the form of a dividend. The Hackett Group has increased its dividend for 1 consecutive years. The Hackett Group is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

The Hackett Group peers beat The Hackett Group on 8 of the 15 factors compared.

About The Hackett Group

The Hackett Group is a global consulting firm that helps organizations improve business performance and transform their operations. Its work spans business strategy, operational improvement, digital transformation and technology implementation. The company advises clients on functions including finance, procurement, human resources, information technology and supply chain management. Its services include benchmarking and performance analysis, process redesign, and support for deploying enterprise platforms such as SAP, Oracle and other business technologies.