FTI Consulting, Inc. (FCN), Huron Consulting Group (HURN): The Last Bargain in the Market

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Navigant Consulting trades at a free cash flow yield similar to that of FTI. However, Huron Consulting Group (NASDAQ:HURN)trades at just an 8% free cash flow yield — rendering FTI and Navigant cheaper on a relative basis. Since all three companies earn high and stable profit margins, it makes sense that they would trade at about the same free cash flow yield.

However, FTI has a key advantage in that it has a higher employee retention rate. Navigant and Huron Consulting Group (NASDAQ:HURN) could easily lose business if its employees are poached by competing firms; only FTI has shown an ability to retain its employees at an unusually high rate, which is why it looks the most attractive at current valuations.

In a market where few bargains exist, FTI Consulting looks like a promising investment.

The article The Last Bargain in the Market originally appeared on Fool.com and is written by Ted Cooper.

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