Analyzing Indra Sistemas (OTCMKTS:ISMAY) and The Hackett Group (NASDAQ:HCKT)

The Hackett Group (NASDAQ:HCKT) and Indra Sistemas (OTCMKTS:ISMAY) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for The Hackett Group and Indra Sistemas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Hackett Group	2	0	1	0	1.67
Indra Sistemas	0	1	1	1	3.00

The Hackett Group currently has a consensus price target of $16.50, suggesting a potential upside of 52.50%. Given The Hackett Group’s higher probable upside, research analysts plainly believe The Hackett Group is more favorable than Indra Sistemas.

Dividends

The Hackett Group pays an annual dividend of $0.48 per share and has a dividend yield of 4.4%. Indra Sistemas pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. The Hackett Group pays out 73.8% of its earnings in the form of a dividend. Indra Sistemas pays out 6.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. The Hackett Group has raised its dividend for 1 consecutive years. The Hackett Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares The Hackett Group and Indra Sistemas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Hackett Group	$286.99 million	0.94	$12.94 million	$0.65	16.65
Indra Sistemas	$6.17 billion	2.03	$493.10 million	$1.47	24.17

Indra Sistemas has higher revenue and earnings than The Hackett Group. The Hackett Group is trading at a lower price-to-earnings ratio than Indra Sistemas, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

The Hackett Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Indra Sistemas has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Insider & Institutional Ownership

78.1% of The Hackett Group shares are owned by institutional investors. 11.8% of The Hackett Group shares are owned by company insiders. Comparatively, 0.3% of Indra Sistemas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares The Hackett Group and Indra Sistemas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Hackett Group	5.86%	34.77%	12.89%
Indra Sistemas	7.12%	22.61%	4.57%

Summary

Indra Sistemas beats The Hackett Group on 9 of the 17 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 Indra Sistemas

Indra Sistemas, S.A. operates as a technology and consulting company for aerospace, defense, and mobility business worldwide. The company operates through four segments: Defence, Air Traffic, Mobility, and Minsait. It offers Mova Consulting for planing and designing transport infrastructures; Mova Collect for ticketing, tolling, and back office applications; Mova Traffic for building traffic management and control solutions; Mova Protect for protection of businesses and people; Mova Experience; Mova Comms for connecting the transportation ecosystem with personalized communication solutions; Mova Care that provides infrastructure operation and maintenance, technology operation and maintenance, and transportation services operation and maintenance; and In-Mova Space, a technological mobility and infrastructure management platform. The company also provides Indra Air Automation; Indra Air Communication; Indra Air Navigation; Indra Air Surveillance; Indra Air Drones; Indra Air Information; and Indra Air Services for air traffic applications. In addition, the company offers defence and security solutions, including Platforms, defence systems, security, cyberdefence, space technologies applied to military operations, military and civilian training solutions, and logistics and maintenance services; and other technological solutions for public administration, industry and consumption, financial services, energy, and telco and media sectors. Indra Sistemas, S.A. was founded in 1921 and is based in Alcobendas, Spain.