WallStSmart

The Hackett Group Inc (HCKT)vsInternational Business Machines (IBM)

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Smart Verdict

WallStSmart Research — data-driven comparison

International Business Machines generates 24300% more annual revenue ($69.09B vs $283.17M). IBM leads profitability with a 15.5% profit margin vs 5.9%. HCKT appears more attractively valued with a PEG of 0.69. HCKT earns a higher WallStSmart Score of 62/100 (C+).

HCKT

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 6.5Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.91

IBM

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 8.0Value: 4.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HCKTSignificantly Overvalued (-50.6%)

Margin of Safety

-50.6%

Fair Value

$9.55

Current Price

$10.98

$1.43 premium

UndervaluedFair: $9.55Overvalued
IBMSignificantly Overvalued (-84.8%)

Margin of Safety

-84.8%

Fair Value

$131.65

Current Price

$249.20

$117.55 premium

UndervaluedFair: $131.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HCKT4 strengths · Avg: 8.8/10
EPS GrowthGrowth
193.2%10/10

Earnings expanding 193.2% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

IBM3 strengths · Avg: 9.3/10
Market CapQuality
$229.21B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
31.1%10/10

Every $100 of equity generates 31 in profit

Free Cash FlowQuality
$2.37B8/10

Generating 2.4B in free cash flow

Areas to Watch

HCKT4 concerns · Avg: 3.0/10
Market CapQuality
$272.41M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

IBM4 concerns · Avg: 3.5/10
PEG RatioValuation
2.214/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Debt/EquityHealth
1.893/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HCKT

The strongest argument for HCKT centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.69 suggests the stock is reasonably priced for its growth.

Bull Case : IBM

The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.5% and operating margin at 16.6%.

Bear Case : HCKT

The primary concerns for HCKT are Market Cap, Profit Margin, Debt/Equity.

Bear Case : IBM

The primary concerns for IBM are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.89 is elevated, increasing financial risk.

Key Dynamics to Monitor

HCKT carries more volatility with a beta of 0.93 — expect wider price swings.

IBM is growing revenue faster at 1.1% — sustainability is the question.

IBM generates stronger free cash flow (2.4B), providing more financial flexibility.

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HCKT scores higher overall (62/100 vs 54/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

The Hackett Group Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

The Hackett Group, Inc. is a technology consulting and strategic advisory firm primarily in North America and internationally. The company is headquartered in Miami, Florida.

International Business Machines

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.

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