The Hackett Group, Inc. (HCKT) vs Information Services Group, Inc. (III)

The Hackett Group, Inc. and Information Services Group, Inc. are both Information Technology Services companies. The Hackett Group, Inc. and Information Services Group, Inc. are of similar size ($255.1M and $254.0M). The Hackett Group, Inc. trades at the lower P/E: 15.4× against 21.9×. Information Services Group, Inc. grew revenue faster over the last twelve months: 4.18% against −9.12%. The Hackett Group, Inc. has the higher net margin (5.86% vs 4.67%) and the higher return on invested capital (14.5% vs 9.81%). Both pay a dividend; Information Services Group, Inc. yields more (3.99% vs 1.90%). Across the 23 metrics below, The Hackett Group, Inc. leads on 14 and Information Services Group, Inc. on 9.

Valuation

Metric HCKT III Information Technology Services median
P/E 15.43 21.92 14.63
P/S 0.88 1.01 1.13
P/B 3.69 2.64 2.10
Price to free cash flow 8.07 14.91 10.11
EV/EBITDA 8.64 11.44 8.56
EV/Sales 1.11 1.15 1.20
Earnings yield 6.48% 4.56% 4.56%
Free cash flow yield 12.39% 6.71% 4.37%

Profitability

Metric HCKT III Information Technology Services median
Gross margin 41.26% 44.80% 31.05%
Operating margin 10.87% 8.24% 3.30%
Net margin 5.86% 4.67% 2.09%
Free cash flow margin 10.85% 6.77% 0.00%
Return on equity 17.90% 12.30% 4.12%
Return on assets 8.23% 5.77% 0.61%
Return on invested capital 14.45% 9.81% 0.57%

Growth

Metric HCKT III Information Technology Services median
Revenue growth (TTM) (9.12%) 4.18% 7.12%
EPS growth (last fiscal year) (56.19%) 216.67% —
Revenue growth, 5-year CAGR 5.00% (0.36%) 7.71%
Net income growth, 5-year CAGR 18.79% 27.66% 0.00%

Health

Metric HCKT III Information Technology Services median
Debt to equity 1.19 0.62 0.45
Current ratio 1.94 2.81 1.66
Net debt to EBITDA 2.00 1.35 0.44

Dividend

Metric HCKT III Information Technology Services median
Dividend yield 1.90% 3.99% 1.21%
Payout ratio 0.35 0.52 0.00

Size

Metric HCKT III Information Technology Services median
Market cap 254.00m 255.14m 1.36b

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