The Hackett Group (NASDAQ:HCKT – Get Free Report) and Fobi AI (OTCMKTS:FOBIF – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Profitability
This table compares The Hackett Group and Fobi AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Hackett Group | 5.86% | 34.77% | 12.89% |
| Fobi AI | N/A | N/A | -273.72% |
Earnings and Valuation
This table compares The Hackett Group and Fobi AI”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Hackett Group | $305.63 million | 0.91 | $12.94 million | $0.65 | 17.17 |
| Fobi AI | $370,000.00 | 27.21 | -$800,000.00 | ($0.02) | -2.00 |
The Hackett Group has higher revenue and earnings than Fobi AI. Fobi AI is trading at a lower price-to-earnings ratio than The Hackett Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for The Hackett Group and Fobi AI, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Hackett Group | 1 | 1 | 1 | 0 | 2.00 |
| Fobi AI | 0 | 0 | 0 | 0 | 0.00 |
The Hackett Group presently has a consensus target price of $16.50, suggesting a potential upside of 47.85%. Given The Hackett Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe The Hackett Group is more favorable than Fobi AI.
Institutional & 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
The Hackett Group has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Fobi AI has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500.
Summary
The Hackett Group beats Fobi AI on 13 of the 14 factors compared between the two stocks.
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.
About Fobi AI
Fobi AI Inc., together with its subsidiaries, operates as a technology and data intelligence company in North America and Europe. It provides software as a service; consulting and development services; and resells, refers, and licenses its products. The company also offers mobile wallet solutions, digital coupons, and customer insights solutions. It serves various industries, including the hospitality and tourism industries. The company was formerly known as Loop Insights Inc. Fobi AI Inc. is based in Vancouver, Canada.
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