Head to Head Comparison: Forrester Research (FORR) and Its Competitors

Forrester Research (NASDAQ:FORR) is one of 205 publicly-traded companies in the “Professional Services” industry, but how does it weigh in compared to its peers? We will compare Forrester Research to related companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, risk, dividends and profitability.

Volatility & Risk

Forrester Research has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Forrester Research’s peers have a beta of 0.95, suggesting that their average stock price is 5% less volatile than the S&P 500.

Valuation & Earnings

This table compares Forrester Research and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Forrester Research	$396.89 million	-$119.36 million	-5.21
Forrester Research Competitors	$3.30 billion	$226.41 million	32.58

Forrester Research’s peers have higher revenue and earnings than Forrester Research. Forrester Research is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

55.2% of Forrester Research shares are owned by institutional investors. Comparatively, 57.3% of shares of all “Professional Services” companies are owned by institutional investors. 40.7% of Forrester Research shares are owned by insiders. Comparatively, 17.0% of shares of all “Professional Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Forrester Research and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forrester Research	-11.17%	6.09%	1.94%
Forrester Research Competitors	1.36%	19.13%	4.65%

Analyst Ratings

This is a summary of recent recommendations for Forrester Research and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forrester Research	1	1	0	0	1.50
Forrester Research Competitors	1476	6294	9050	477	2.49

As a group, “Professional Services” companies have a potential upside of 36.23%. Given Forrester Research’s peers stronger consensus rating and higher probable upside, analysts plainly believe Forrester Research has less favorable growth aspects than its peers.

Summary

Forrester Research peers beat Forrester Research on 12 of the 13 factors compared.

Forrester Research Company Profile

Forrester Research, Inc. operates as an independent research and advisory company in the United States and internationally. The company operates in three segments: Research, Consulting, and Events. The Research segment primary subscription research services include Forrester Decisions, Forrester Research, and SiriusDecisions Research, which are designed to provide business and technology leaders with a proven path to growth through customer obsession. This segment delivers content, such as future trends, predictions, and market forecasts; deep consumer and business buyer data and insights; curated best practice models and tools to run business functions; operational and performance benchmarking data; and technology and service market landscapes and vendor evaluations. The Consulting segment provides consulting projects, include conducting maturity assessments, prioritizing best practices, developing strategies, building business cases, selecting technology vendors, structuring organizations, developing content marketing strategies and collateral, and sales tools; and advisory services. The Events segment hosts events related to business-to-business marketing, sales and product leadership, customer experience, security and risk, new technology and innovation, and data strategies and insights. The company sells its products and services through direct sales force in various locations. Forrester Research, Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.