The Hackett Group (NASDAQ:HCKT) & Obic (OTCMKTS:OBIIF) Critical Survey

Obic (OTCMKTS:OBIIF) and The Hackett Group (NASDAQ:HCKT) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

78.1% of The Hackett Group shares are held by institutional investors. 11.8% of The Hackett Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Obic has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, The Hackett Group has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Obic and The Hackett Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Obic	56.13%	15.65%	13.26%
The Hackett Group	5.86%	34.77%	12.89%

Earnings & Valuation

This table compares Obic and The Hackett Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obic	$898.19 million	14.55	$496.26 million	$1.16	25.82
The Hackett Group	$305.63 million	0.80	$12.94 million	$0.65	15.05

Obic has higher revenue and earnings than The Hackett Group. The Hackett Group is trading at a lower price-to-earnings ratio than Obic, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Obic and The Hackett Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obic	0	1	0	0	2.00
The Hackett Group	2	0	1	0	1.67

The Hackett Group has a consensus price target of $16.50, indicating a potential upside of 68.71%. Given The Hackett Group’s higher possible upside, analysts clearly believe The Hackett Group is more favorable than Obic.

Summary

Obic beats The Hackett Group on 8 of the 14 factors compared between the two stocks.

About Obic

OBIC Co.,Ltd., together with its subsidiaries, provides system integration, system support, office automation, and package software services. It offers system integration services, including developing ERP software products to provide integrated administrative systems comprising personnel, payroll, working condition management, marketing, and production systems, as well as related training courses. The company also provides system support services, including system operation support and maintenance, and hardware maintenance. In addition, it offers office automation services, such as sale of package software, and peripheral equipment and supplies, as well as engages in processing of printed materials. The company was incorporated in 1968 and is headquartered in Tokyo, Japan.

About The Hackett Group

The Hackett Group, Inc. operates as an intellectual property-based executive advisory, strategic consulting, and digital transformation company in the United States, Europe, and internationally. The company operates through three segments: Global Strategy & Business Transformation, Oracle Solutions, and SAP Solutions. It offers Hackett Connect, an online searchable repository; best practice accelerators that provide web-based access to best practices, customized software configuration tools, and best practice process flows; advisor inquiry for access to fact-based advice on proven approaches and methods; best practice research that provides insights into the proven approaches; and peer interaction comprising member-led webcasts, annual best practice conferences, annual member forums, membership performance surveys, and client-submitted content, as well as IP-as-a-service and Hackett Institute programs. The company also provides benchmarking services that conduct studies for selling, general and administrative, finance, human resources, information technology, procurement, enterprise performance management, and shared services; and business transformation practices which help clients develop a coordinated digital transformation strategy. In addition, it offers oracle solutions that help clients to choose and deploy oracle applications that best meet their needs and objectives. Further, the company provides SAP solutions, including planning, architecture, and vendor evaluation and selection through implementation, customization, testing, and integration; post-implementation support, change and exception management, process transparency, system documentation, and end-user training; and off-shore application development, and application maintenance and support services. The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in 2008. The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.