Critical Analysis: The Hackett Group (NASDAQ:HCKT) & Aeries Technology (NASDAQ:AERT)

The Hackett Group (NASDAQ:HCKT) and Aeries Technology (NASDAQ:AERT) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for The Hackett Group and Aeries Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hackett Group	0	1	2	0	2.67
Aeries Technology	0	0	0	0	N/A

The Hackett Group currently has a consensus target price of $28.00, indicating a potential upside of 10.98%. Given The Hackett Group’s higher probable upside, analysts plainly believe The Hackett Group is more favorable than Aeries Technology.

Volatility and Risk

The Hackett Group has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Aeries Technology has a beta of -0.52, indicating that its share price is 152% less volatile than the S&P 500.

Institutional & Insider Ownership

78.1% of The Hackett Group shares are owned by institutional investors. Comparatively, 99.2% of Aeries Technology shares are owned by institutional investors. 15.4% of The Hackett Group shares are owned by insiders. Comparatively, 1.5% of Aeries Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares The Hackett Group and Aeries Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Hackett Group	11.46%	38.20%	19.21%
Aeries Technology	N/A	N/A	-18.17%

Earnings and Valuation

This table compares The Hackett Group and Aeries Technology’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hackett Group	$303.10 million	2.30	$34.15 million	$1.26	20.02
Aeries Technology	$67.88 million	0.40	-$1.53 million	N/A	N/A

The Hackett Group has higher revenue and earnings than Aeries Technology.

Summary

The Hackett Group beats Aeries Technology on 10 of the 11 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 Aeries Technology

Aeries Technology, Inc. operates as a professional services and consulting partner in the United States and internationally. The company offers management consultancy services for private equity sponsors and their portfolio companies, including software solutions, product management, IT infrastructure, information and cyber security, ERP and CRM platform management, business process management, and digital transformation services. The company was founded in 2012 and is based in Orem, Utah.