FTI Consulting (FCN) versus Its Rivals Critical Contrast

FTI Consulting (NYSE: FCN) is one of 26 public companies in the “Management consulting services” industry, but how does it contrast to its competitors? We will compare FTI Consulting to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, dividends and valuation.

Analyst Recommendations

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This is a breakdown of recent ratings and target prices for FTI Consulting and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FTI Consulting 0 1 0 0 2.00
FTI Consulting Competitors 92 309 479 14 2.46

FTI Consulting currently has a consensus target price of $38.00, suggesting a potential downside of 22.91%. As a group, “Management consulting services” companies have a potential upside of 8.12%. Given FTI Consulting’s competitors stronger consensus rating and higher probable upside, analysts clearly believe FTI Consulting has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

98.7% of FTI Consulting shares are held by institutional investors. Comparatively, 62.0% of shares of all “Management consulting services” companies are held by institutional investors. 1.3% of FTI Consulting shares are held by company insiders. Comparatively, 13.3% of shares of all “Management consulting services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares FTI Consulting and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FTI Consulting $1.81 billion $107.96 million 21.25
FTI Consulting Competitors $978.13 million $63.17 million 18.86

FTI Consulting has higher revenue and earnings than its competitors. FTI Consulting is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

FTI Consulting has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, FTI Consulting’s competitors have a beta of 0.77, meaning that their average stock price is 23% less volatile than the S&P 500.

Profitability

This table compares FTI Consulting and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FTI Consulting 5.97% 7.80% 4.08%
FTI Consulting Competitors -217.33% -13.00% -6.28%

Summary

FTI Consulting beats its competitors on 7 of the 13 factors compared.

FTI Consulting Company Profile

FTI Consulting, Inc. is a business advisory company. The Company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications. The Company provides advice and services, such as restructuring (including bankruptcy), capital formation and indebtedness, interim business management, performance improvements, forensic accounting and litigation matters, international arbitrations, mergers and acquisitions (M&A), antitrust and competition matters, securities litigation, electronic discovery (or e-discovery), management and retrieval of electronically stored information (ESI), reputation management and strategic communications. The Company collaborates with Chief Financial Officers (CFOs) and their finance and accounting organizations and uses engagement tools to provide transformation services, manage risk, deliver business intelligence capabilities, and prepare for and execute events.

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