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HCKT vs. ACN: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Consulting Services sector have probably already heard of Hackett Group (HCKT - Free Report) and Accenture (ACN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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 has a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HCKT likely has seen a stronger improvement to its earnings outlook than ACN has recently. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

HCKT currently has a forward P/E ratio of 13.65, while ACN has a forward P/E of 26.48. We also note that HCKT has a PEG ratio of 0.88. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ACN currently has a PEG ratio of 2.65.

Another notable valuation metric for HCKT is its P/B ratio of 4.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ACN has a P/B of 8.57.

These metrics, and several others, help HCKT earn a Value grade of B, while ACN has been given a Value grade of C.

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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