WallStSmart

The Hackett Group Inc (HCKT)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 108727% more annual revenue ($318.27B vs $292.46M). MSFT leads profitability with a 39.3% profit margin vs 4.8%. HCKT appears more attractively valued with a PEG of 0.65. MSFT earns a higher WallStSmart Score of 72/100 (B).

HCKT

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 5.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.91

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 4.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HCKTSignificantly Overvalued (-47.5%)

Margin of Safety

-47.5%

Fair Value

$9.75

Current Price

$11.17

$1.42 premium

UndervaluedFair: $9.75Overvalued
MSFTSignificantly Overvalued (-82.9%)

Margin of Safety

-82.9%

Fair Value

$215.02

Current Price

$451.10

$236.08 premium

UndervaluedFair: $215.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HCKT3 strengths · Avg: 9.0/10
EPS GrowthGrowth
54.5%10/10

Earnings expanding 54.5% YoY

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

PEG RatioValuation
0.658/10

Growing faster than its price suggests

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$2.90T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
39.3%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Free Cash FlowQuality
$15.80B10/10

Generating 15.8B in free cash flow

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

HCKT4 concerns · Avg: 3.0/10
Market CapQuality
$244.58M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.233/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MSFT1 concerns · Avg: 4.0/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : HCKT

The strongest argument for HCKT centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.65 suggests the stock is reasonably priced for its growth.

Bull Case : MSFT

The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : HCKT

The primary concerns for HCKT are Market Cap, Profit Margin, Debt/Equity. Thin 4.8% margins leave little buffer for downturns.

Bear Case : MSFT

The primary concerns for MSFT are Price/Book.

Key Dynamics to Monitor

HCKT profiles as a value stock while MSFT is a growth play — different risk/reward profiles.

MSFT carries more volatility with a beta of 1.13 — expect wider price swings.

MSFT is growing revenue faster at 18.3% — sustainability is the question.

MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.

Bottom Line

MSFT scores higher overall (72/100 vs 62/100), backed by strong 39.3% margins and 18.3% revenue growth. Both earn "Strong 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.

Microsoft Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.

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