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. is the larger, with a market value of $330.4M against $283.8M — 1.2× the size. The Hackett Group, Inc. trades at the lower P/E: 19.1× against 23.6×. Information Services Group, Inc. grew revenue faster over the last twelve months: 4.85% against −8.23%. The Hackett Group, Inc. has the higher net margin (6.29% vs 4.74%) and the higher return on invested capital (14.4% vs 11.2%). Both pay a dividend; The Hackett Group, Inc. yields more (3.58% vs 3.05%). Across the 23 metrics below, Information Services Group, Inc. leads on 13 and The Hackett Group, Inc. on 10.

Valuation

Metric HCKT III Information Technology Services median
P/E 19.09 23.62 16.12
P/S 1.18 1.13 1.14
P/B 4.70 3.01 1.73
Price to free cash flow 16.03 15.01 13.77
EV/EBITDA 10.52 11.69 9.89
EV/Sales 1.45 1.25 1.34
Earnings yield 5.24% 4.23% 3.10%
Free cash flow yield 6.24% 6.66% 0.06%

Profitability

Metric HCKT III Information Technology Services median
Gross margin 41.03% 45.20% 30.04%
Operating margin 11.71% 8.88% 1.81%
Net margin 6.29% 4.74% 0.79%
Free cash flow margin 7.34% 7.50% 0.00%
Return on equity 20.66% 12.68% 0.00%
Return on assets 8.58% 5.70% 0.00%
Return on invested capital 14.36% 11.22% 0.00%

Growth

Metric HCKT III Information Technology Services median
Revenue growth (TTM) (8.23%) 4.85% 4.85%
EPS growth (last fiscal year) (56.19%) 216.67% 3.57%
Revenue growth, 5-year CAGR 5.00% (0.36%) 6.93%
Net income growth, 5-year CAGR 18.79% 27.66% 0.00%

Health

Metric HCKT III Information Technology Services median
Debt to equity 1.21 0.63 0.31
Current ratio 2.13 2.80 1.69
Net debt to EBITDA 2.00 1.35 0.55

Dividend

Metric HCKT III Information Technology Services median
Dividend yield 3.58% 3.05% 1.97%
Payout ratio 0.68 0.76 0.29

Size

Metric HCKT III Information Technology Services median
Market cap 330.38m 283.76m 1.02b

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