Critical Review: FTI Consulting (NYSE:FCN) & Upwork (NASDAQ:UPWK)

FTI Consulting (NYSE:FCN – Get Free Report) and Upwork (NASDAQ:UPWK – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Institutional and Insider Ownership

99.4% of FTI Consulting shares are held by institutional investors. Comparatively, 77.7% of Upwork shares are held by institutional investors. 1.8% of FTI Consulting shares are held by company insiders. Comparatively, 4.9% of Upwork shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for FTI Consulting and Upwork, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FTI Consulting 0 2 0 0 2.00
Upwork 1 9 3 0 2.15

FTI Consulting currently has a consensus price target of $174.50, suggesting a potential downside of 11.68%. Upwork has a consensus price target of $13.55, suggesting a potential upside of 39.12%. Given Upwork’s stronger consensus rating and higher possible upside, analysts clearly believe Upwork is more favorable than FTI Consulting.

Earnings & Valuation

This table compares FTI Consulting and Upwork”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FTI Consulting $3.79 billion 1.42 $270.87 million $8.02 24.63
Upwork $787.78 million 1.56 $115.43 million $0.81 12.02

FTI Consulting has higher revenue and earnings than Upwork. Upwork is trading at a lower price-to-earnings ratio than FTI Consulting, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

FTI Consulting has a beta of -0.15, suggesting that its stock price is 115% less volatile than the S&P 500. Comparatively, Upwork has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares FTI Consulting and Upwork’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FTI Consulting 5.86% 18.41% 7.96%
Upwork 13.53% 16.92% 8.79%

Summary

Upwork beats FTI Consulting on 8 of the 14 factors compared between the two stocks.

About FTI Consulting

(Get Free Report)

FTI Consulting, Inc. is a global business advisory firm that helps organizations address financial, legal, operational, regulatory and reputational challenges. Founded in 1982, the company serves businesses, law firms, government agencies and other organizations. Its services span corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology and strategic communications. Work may include advising on restructuring and transactions, investigating disputes and misconduct, providing expert analysis in legal matters, managing electronic evidence and supporting communications during significant events.

About Upwork

(Get Free Report)

Upwork operates an online marketplace that connects businesses with independent professionals and agencies for contract and project-based work. The platform supports hiring across areas such as software development, design, marketing, writing, customer service and consulting. Its services include the Talent Marketplace, where clients can find and hire professionals, and Project Catalog, which offers predefined services with set scopes. Upwork also provides solutions for larger organizations seeking to source and manage freelance talent.

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