Head-To-Head Analysis: Apollo Medical (AMEH) and The Hackett Group (HCKT)

Apollo Medical (NASDAQ:AMEH) and The Hackett Group (NASDAQ:HCKT) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Earnings & Valuation

This table compares Apollo Medical and The Hackett Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apollo Medical $519.91 million 1.33 $10.84 million $0.29 66.52
The Hackett Group $285.89 million 1.72 $23.91 million $1.06 15.56

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

Risk and Volatility

Apollo Medical has a beta of -1.08, suggesting that its share price is 208% less volatile than the S&P 500. Comparatively, The Hackett Group has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Apollo Medical and The Hackett Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Medical 0 0 0 0 N/A
The Hackett Group 0 0 4 0 3.00

The Hackett Group has a consensus target price of $22.50, indicating a potential upside of 36.45%. Given The Hackett Group’s higher probable upside, analysts clearly believe The Hackett Group is more favorable than Apollo Medical.

Dividends

The Hackett Group pays an annual dividend of $0.34 per share and has a dividend yield of 2.1%. Apollo Medical does not pay a dividend. The Hackett Group pays out 32.1% of its earnings in the form of a dividend. The Hackett Group has raised its dividend for 5 consecutive years.

Institutional & Insider Ownership

6.6% of Apollo Medical shares are owned by institutional investors. Comparatively, 78.8% of The Hackett Group shares are owned by institutional investors. 20.5% of Apollo Medical shares are owned by insiders. Comparatively, 18.5% 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 company will outperform the market over the long term.

Profitability

This table compares Apollo Medical and The Hackett Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apollo Medical 1.79% 4.88% 1.68%
The Hackett Group 8.35% 21.76% 14.77%

Summary

The Hackett Group beats Apollo Medical on 12 of the 16 factors compared between the two stocks.

About Apollo Medical

Apollo Medical Holdings, Inc., an integrated health care delivery and management company, provides medical care services. The company offers care coordination services to principal constituents of the healthcare delivery system, including patients, families, primary care physicians, specialists, acute care hospitals, alternative sites of inpatient care, physician groups, and health plans. Its physician network consists of primary care physicians, specialist physicians, and hospitalists. The company serves the patients, primarily covered by private or public insurance, such as Medicare, Medicaid, and health maintenance organizations; and non-insured patients in California. Apollo Medical Holdings, Inc. is based in Alhambra, California.

About The Hackett Group

The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in North America and European countries. Its executive advisory programs include best practice intelligence center, an online searchable repository of best practices, performance metrics, conference presentations, and associated research; best practice accelerators that provide Web-based access to best practices, customized software configuration tools, and best practice process flows; advisor inquiry, an inquiry service used by clients for access to fact-based advice on proven approaches and methods; best practice research, a 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. The company's benchmarking services conduct studies in the areas of selling, general and administrative, finance, human resources, information technology, procurement, enterprise performance management, and shared services; and business transformation practices help clients to develop coordinated strategy for achieving performance enhancements across the enterprise. It also provides Oracle EEA solutions in the areas of core financial close and consolidation, integrated business planning, and reporting/advanced analytics. In addition, the company offers SAP Solutions, including planning, architecture, and vendor evaluation and selection through implementation, customization, testing, and integration; post-implementation support, change management, 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.

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