BigBear.ai (NYSE:BBAI – Get Free Report) and The Hackett Group (NASDAQ:HCKT – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.
Profitability
This table compares BigBear.ai and The Hackett Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BigBear.ai | -65.20% | -13.44% | -10.63% |
| The Hackett Group | 5.86% | 34.77% | 12.89% |
Earnings and Valuation
This table compares BigBear.ai and The Hackett Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BigBear.ai | $127.67 million | 10.87 | -$293.91 million | ($0.21) | -13.79 |
| The Hackett Group | $286.99 million | 0.90 | $12.94 million | $0.65 | 16.06 |
The Hackett Group has higher revenue and earnings than BigBear.ai. BigBear.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 recent recommendations and price targets for BigBear.ai and The Hackett Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BigBear.ai | 1 | 1 | 1 | 0 | 2.00 |
| The Hackett Group | 2 | 0 | 1 | 0 | 1.67 |
BigBear.ai currently has a consensus price target of $5.00, indicating a potential upside of 72.71%. The Hackett Group has a consensus price target of $16.50, indicating a potential upside of 58.08%. Given BigBear.ai’s stronger consensus rating and higher possible upside, equities research analysts plainly believe BigBear.ai is more favorable than The Hackett Group.
Risk and Volatility
BigBear.ai has a beta of 3.35, meaning that its share price is 235% more volatile than the S&P 500. Comparatively, The Hackett Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
Institutional & Insider Ownership
7.5% of BigBear.ai shares are owned by institutional investors. Comparatively, 78.1% of The Hackett Group shares are owned by institutional investors. 0.6% of BigBear.ai shares are owned by insiders. Comparatively, 11.8% of The Hackett Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
The Hackett Group beats BigBear.ai on 9 of the 13 factors compared between the two stocks.
About BigBear.ai
BigBear.ai Holdings, Inc. provides artificial intelligence-powered decision intelligence solutions. It offers national security, supply chain management, and digital identity and biometrics solutions. The company also provides data ingestion, data enrichment, data processing, artificial intelligence, machine learning, predictive analytics, and predictive visualization solutions and services. It serves nation defense and intelligence agencies, border protection, transportation security, manufacturing, distribution and logistics, travel, entertainment, and tourism sectors. The company is headquartered in Columbia, Maryland.
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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