Analyzing Forrester Research (FORR) & Its Competitors

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

Volatility & Risk

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

Institutional and Insider Ownership

55.2% of Forrester Research shares are held by institutional investors. Comparatively, 57.6% of shares of all “Professional Services” companies are held by institutional investors. 40.7% of Forrester Research shares are held by company insiders. Comparatively, 17.0% of shares of all “Professional Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Forrester Research pays an annual dividend of $0.80 per share and has a dividend yield of 6.8%. Forrester Research pays out -35.6% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.6% and pay out -158.7% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Forrester Research and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forrester Research	1	1	0	0	1.50
Forrester Research Competitors	1483	6325	9086	480	2.49

As a group, “Professional Services” companies have a potential upside of 35.64%. Given Forrester Research’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Forrester Research has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Forrester Research and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Forrester Research	$381.04 million	-$119.36 million	-5.22
Forrester Research Competitors	$3.35 billion	$227.10 million	31.13

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

Profitability

This table compares Forrester Research and its competitors’ 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	2.03%	22.74%	4.75%

Summary

Forrester Research competitors beat Forrester Research on 13 of the 15 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.