Reviewing The Hackett Group (NASDAQ:HCKT) and Snowflake (NYSE:SNOW)
by Sarita Garza · The Markets DailySnowflake (NYSE:SNOW – Get Free Report) and The Hackett Group (NASDAQ:HCKT – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional & Insider Ownership
65.1% of Snowflake shares are owned by institutional investors. Comparatively, 78.1% of The Hackett Group shares are owned by institutional investors. 4.8% of Snowflake 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.
Profitability
This table compares Snowflake and The Hackett Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Snowflake | -20.07% | -46.32% | -10.90% |
| The Hackett Group | 5.86% | 34.77% | 12.89% |
Analyst Ratings
This is a summary of current recommendations for Snowflake and The Hackett Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snowflake | 1 | 5 | 36 | 0 | 2.83 |
| The Hackett Group | 1 | 1 | 1 | 0 | 2.00 |
Snowflake currently has a consensus target price of $413.87, suggesting a potential upside of 29.92%. The Hackett Group has a consensus target price of $16.50, suggesting a potential upside of 42.92%. Given The Hackett Group’s higher possible upside, analysts clearly believe The Hackett Group is more favorable than Snowflake.
Volatility & Risk
Snowflake has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, The Hackett Group has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Valuation and Earnings
This table compares Snowflake and The Hackett Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Snowflake | $4.68 billion | 23.99 | -$1.33 billion | ($3.18) | -100.17 |
| The Hackett Group | $305.63 million | 0.94 | $12.94 million | $0.65 | 17.76 |
The Hackett Group has lower revenue, but higher earnings than Snowflake. Snowflake 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.
Summary
The Hackett Group beats Snowflake on 9 of the 14 factors compared between the two stocks.
About Snowflake
Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.
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.