Financial Review: Greenpro Capital (NASDAQ:GRNQ) versus The Hackett Group (NASDAQ:HCKT)

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

Insider and Institutional Ownership

0.9% of Greenpro Capital shares are owned by institutional investors. Comparatively, 78.1% of The Hackett Group shares are owned by institutional investors. 45.4% of Greenpro Capital shares are owned by company insiders. Comparatively, 9.2% of The Hackett Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Greenpro Capital	-244.59%	-119.86%	-88.60%
The Hackett Group	11.05%	35.31%	18.95%

Analyst Recommendations

This is a summary of recent ratings and target prices for Greenpro Capital and The Hackett Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greenpro Capital	0	0	0	0	0.00
The Hackett Group	0	1	3	0	2.75

The Hackett Group has a consensus target price of $30.00, suggesting a potential downside of 0.46%. Given The Hackett Group’s stronger consensus rating and higher possible upside, analysts plainly believe The Hackett Group is more favorable than Greenpro Capital.

Valuation & Earnings

This table compares Greenpro Capital 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
Greenpro Capital	$3.48 million	2.66	$1.07 million	($0.86)	-1.42
The Hackett Group	$296.59 million	2.80	$34.15 million	$1.22	24.70

The Hackett Group has higher revenue and earnings than Greenpro Capital. Greenpro Capital 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.

Volatility & Risk

Greenpro Capital has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, The Hackett Group has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Summary

The Hackett Group beats Greenpro Capital on 12 of the 14 factors compared between the two stocks.

About Greenpro Capital

Greenpro Capital Corp. provides financial consulting and corporate advisory services to small and medium-size businesses primarily in Hong Kong, Malaysia, and China. It operates in two segments, Service Business and Real Estate Business. The company offers business consulting and corporate advisory services, including cross-border listing advisory, tax planning, bookkeeping, advisory and transaction, record management, and accounting outsourcing services; and venture capital related education and support services. It is also involved in the acquisition and rental of real estate properties held for investment and sale; and provision of company formation advisory, company secretarial, and financial services. In addition, the company provides corporate advisory services, such as company review, bank loan advisory, and bank products analysis, as well as loan and credit, and insurance brokerage services; and wealth planning, administration, charity, tax and legal, trusteeship and risk management, investment planning and management, and business support services, as well as asset protection and management, consolidation, and performance monitoring services. The company was formerly known as Greenpro, Inc. and changed its name to Greenpro Capital Corp. in May 2015. Greenpro Capital Corp. was incorporated in 2013 and is headquartered in Kuala Lumpur, Malaysia.

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.