HCKT vs. ACN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Consulting Services sector have probably already heard of Hackett Group (HCKT) and Accenture (ACN). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Hackett Group is sporting a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HCKT likely has seen a stronger improvement to its earnings outlook than ACN has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HCKT currently has a forward P/E ratio of 16.60, while ACN has a forward P/E of 31.34. We also note that HCKT has a PEG ratio of 1.07. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ACN currently has a PEG ratio of 3.13.
Another notable valuation metric for HCKT is its P/B ratio of 4.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ACN has a P/B of 10.14.
Based on these metrics and many more, HCKT holds a Value grade of B, while ACN has a Value grade of C.
HCKT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HCKT is likely the superior value option right now.
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The Hackett Group, Inc. (HCKT) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
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