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HCKT vs. ACN: Which Stock Is the Better Value Option?
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Investors with an interest in Consulting Services stocks have likely encountered both Hackett Group (HCKT - Free Report) and Accenture (ACN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Hackett Group and Accenture are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HCKT has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HCKT currently has a forward P/E ratio of 13.64, while ACN has a forward P/E of 26.89. We also note that HCKT has a PEG ratio of 1.01. 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 3.08.
Another notable valuation metric for HCKT is its P/B ratio of 7.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ACN has a P/B of 7.80.
These are just a few of the metrics contributing to HCKT's Value grade of A and ACN's Value grade of D.
HCKT sticks out from ACN in both our Zacks Rank and Style Scores models, so value investors will likely feel that HCKT is the better option right now.
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HCKT vs. ACN: Which Stock Is the Better Value Option?
Investors with an interest in Consulting Services stocks have likely encountered both Hackett Group (HCKT - Free Report) and Accenture (ACN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Hackett Group and Accenture are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HCKT has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HCKT currently has a forward P/E ratio of 13.64, while ACN has a forward P/E of 26.89. We also note that HCKT has a PEG ratio of 1.01. 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 3.08.
Another notable valuation metric for HCKT is its P/B ratio of 7.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ACN has a P/B of 7.80.
These are just a few of the metrics contributing to HCKT's Value grade of A and ACN's Value grade of D.
HCKT sticks out from ACN in both our Zacks Rank and Style Scores models, so value investors will likely feel that HCKT is the better option right now.