Charles River Associates (NASDAQ:CRAI – 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, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Valuation & Earnings
This table compares Charles River Associates 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 | |
| Charles River Associates | $687.41 million | 1.89 | $46.65 million | $8.26 | 23.87 |
| The Hackett Group | $313.86 million | 1.85 | $29.63 million | $0.60 | 35.15 |
Dividends
Charles River Associates pays an annual dividend of $1.96 per share and has a dividend yield of 1.0%. The Hackett Group pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. Charles River Associates pays out 23.7% of its earnings in the form of a dividend. The Hackett Group pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Charles River Associates has raised its dividend for 7 consecutive years and The Hackett Group has raised its dividend for 1 consecutive years.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Charles River Associates and The Hackett Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Charles River Associates | 0 | 0 | 1 | 0 | 3.00 |
| The Hackett Group | 0 | 0 | 3 | 0 | 3.00 |
Charles River Associates currently has a consensus target price of $228.00, suggesting a potential upside of 15.65%. The Hackett Group has a consensus target price of $29.6667, suggesting a potential upside of 40.67%. Given The Hackett Group’s higher probable upside, analysts clearly believe The Hackett Group is more favorable than Charles River Associates.
Risk & Volatility
Charles River Associates has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, The Hackett Group has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
Profitability
This table compares Charles River Associates and The Hackett Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Charles River Associates | 7.93% | 25.51% | 9.12% |
| The Hackett Group | 5.37% | 24.12% | 14.34% |
Insider & Institutional Ownership
84.1% of Charles River Associates shares are held by institutional investors. Comparatively, 78.1% of The Hackett Group shares are held by institutional investors. 4.7% of Charles River Associates shares are held by company insiders. Comparatively, 15.4% of The Hackett Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Charles River Associates beats The Hackett Group on 9 of the 16 factors compared between the two stocks.
About Charles River Associates
CRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services worldwide. It advises clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through business strategy and performance-related issues. The company also offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in the areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. In addition, it offers management consulting services comprising strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, environmental, social and corporate governance and sustainability strategy and analysis, design and implementation of auction and bidding, new product pricing strategies, survey and market research, valuation of intellectual property and other assets, assessment of competitors’ actions, and analysis of new sources of supply. The company serves various industries, including communications and media; consumer, health, and wellness products; energy; entertainment and leisure; financial services; healthcare; life sciences; manufacturing and industries; natural resources; retail and distribution; technology; and transportation. CRA International, Inc. was incorporated in 1965 and is headquartered in Boston, Massachusetts.
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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