Conduent Inc. (CNDT) vs The Hackett Group, Inc. (HCKT)

Conduent Inc. and The Hackett Group, Inc. are both Information Technology Services companies. Conduent Inc. and The Hackett Group, Inc. are of similar size ($254.0M and $253.5M). Conduent Inc. has negative trailing earnings, so its P/E is not meaningful; The Hackett Group, Inc. trades at 15.4×. Conduent Inc. grew revenue faster over the last twelve months: −0.64% against −9.12%. The Hackett Group, Inc. has the higher net margin (5.86% vs −8.09%) and the higher return on invested capital (14.5% vs −4.26%). Across the 20 metrics below, The Hackett Group, Inc. leads on 14 and Conduent Inc. on 6.

Valuation

Metric CNDT HCKT Information Technology Services median
P/E n/m 15.43 14.63
P/S 0.09 0.88 1.13
P/B 0.49 3.69 2.10
Price to free cash flow n/m 8.07 10.11
EV/EBITDA 6.60 8.64 8.56
EV/Sales 0.25 1.11 1.20
Earnings yield (92.12%) 6.48% 4.56%
Free cash flow yield (28.49%) 12.39% 4.37%

Profitability

Metric CNDT HCKT Information Technology Services median
Gross margin 18.25% 41.26% 31.05%
Operating margin (2.69%) 10.87% 3.30%
Net margin (8.09%) 5.86% 2.09%
Free cash flow margin (2.48%) 10.85% 0.00%
Return on equity (36.53%) 17.90% 4.12%
Return on assets (10.06%) 8.23% 0.61%
Return on invested capital (4.26%) 14.45% 0.57%

Growth

Metric CNDT HCKT Information Technology Services median
Revenue growth (TTM) (0.64%) (9.12%) 7.12%
EPS growth (last fiscal year) (151.12%) (56.19%) —
Revenue growth, 5-year CAGR (6.08%) 5.00% 7.71%
Net income growth, 5-year CAGR 0.00% 18.79% 0.00%

Health

Metric CNDT HCKT Information Technology Services median
Debt to equity 1.07 1.19 0.45
Current ratio 1.55 1.94 1.66
Net debt to EBITDA 4.32 2.00 0.44

Dividend

Metric CNDT HCKT Information Technology Services median
Dividend yield — 1.90% 1.21%
Payout ratio 0.00 0.35 0.00

Size

Metric CNDT HCKT Information Technology Services median
Market cap 253.50m 254.00m 1.36b

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