The Hackett Group, Inc. (HCKT) vs VERRA MOBILITY CORP (VRRM)

The Hackett Group, Inc. and VERRA MOBILITY CORP are both Information Technology Services companies. VERRA MOBILITY CORP is the larger, with a market value of $506.1M against $254.0M — 2.0× the size. VERRA MOBILITY CORP trades at the lower P/E: 12.0× against 15.4×. VERRA MOBILITY CORP grew revenue faster over the last twelve months: 11.1% against −9.12%. The Hackett Group, Inc. has the higher net margin (5.86% vs 4.40%) and the higher return on invested capital (14.5% vs 7.10%). Across the 22 metrics below, VERRA MOBILITY CORP leads on 13 and The Hackett Group, Inc. on 9.

Valuation

Metric HCKT VRRM Information Technology Services median
P/E 15.43 12.00 14.63
P/S 0.88 0.49 1.13
P/B 3.69 2.20 2.10
Price to free cash flow 8.07 5.08 10.11
EV/EBITDA 8.64 5.79 8.56
EV/Sales 1.11 1.46 1.20
Earnings yield 6.48% 8.33% 4.56%
Free cash flow yield 12.39% 19.69% 4.37%

Profitability

Metric HCKT VRRM Information Technology Services median
Gross margin 41.26% 55.50% 31.05%
Operating margin 10.87% 13.59% 3.30%
Net margin 5.86% 4.40% 2.09%
Free cash flow margin 10.85% 9.62% 0.00%
Return on equity 17.90% 15.38% 4.12%
Return on assets 8.23% 2.67% 0.61%
Return on invested capital 14.45% 7.10% 0.57%

Growth

Metric HCKT VRRM Information Technology Services median
Revenue growth (TTM) (9.12%) 11.10% 7.12%
EPS growth (last fiscal year) (56.19%) 347.37% —
Revenue growth, 5-year CAGR 5.00% 19.99% 7.71%
Net income growth, 5-year CAGR 18.79% 0.00% 0.00%

Health

Metric HCKT VRRM Information Technology Services median
Debt to equity 1.19 4.63 0.45
Current ratio 1.94 2.06 1.66
Net debt to EBITDA 2.00 2.70 0.44

Dividend

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

Size

Metric HCKT VRRM Information Technology Services median
Market cap 254.00m 506.10m 1.36b

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