Franklin Covey (NYSE:FC – Get Free Report) and The Hackett Group (NASDAQ:HCKT – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Risk & Volatility
Franklin Covey has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, The Hackett Group has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
Profitability
This table compares Franklin Covey and The Hackett Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin Covey | 3.81% | 19.08% | 6.12% |
| The Hackett Group | 5.37% | 24.12% | 14.34% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin Covey | $267.07 million | 0.69 | $23.40 million | $0.24 | 62.71 |
| The Hackett Group | $309.11 million | 1.59 | $29.63 million | $0.38 | 47.79 |
The Hackett Group has higher revenue and earnings than Franklin Covey. The Hackett Group is trading at a lower price-to-earnings ratio than Franklin Covey, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
69.9% of Franklin Covey shares are owned by institutional investors. Comparatively, 78.1% of The Hackett Group shares are owned by institutional investors. 15.5% of Franklin Covey shares are owned by insiders. Comparatively, 15.4% of The Hackett Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Franklin Covey and The Hackett Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin Covey | 1 | 0 | 2 | 0 | 2.33 |
| The Hackett Group | 0 | 1 | 1 | 0 | 2.50 |
Franklin Covey presently has a consensus price target of $24.50, indicating a potential upside of 62.79%. The Hackett Group has a consensus price target of $27.00, indicating a potential upside of 48.68%. Given Franklin Covey’s higher probable upside, analysts plainly believe Franklin Covey is more favorable than The Hackett Group.
Summary
The Hackett Group beats Franklin Covey on 11 of the 14 factors compared between the two stocks.
About Franklin Covey
Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
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.
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