Comparing Charles River Associates (CRAI) & Its Rivals

Charles River Associates (NASDAQ:CRAI) is one of 203 public companies in the “Professional Services” industry, but how does it compare to its peers? We will compare Charles River Associates to similar companies based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Profitability

This table compares Charles River Associates and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charles River Associates	6.28%	27.55%	8.30%
Charles River Associates Competitors	0.21%	36.58%	4.42%

Institutional and Insider Ownership

84.1% of Charles River Associates shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are owned by institutional investors. 4.5% of Charles River Associates shares are owned by insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Charles River Associates pays an annual dividend of $2.28 per share and has a dividend yield of 1.2%. Charles River Associates pays out 30.4% of its earnings in the form of a dividend. As a group, “Professional Services” companies pay a dividend yield of 2.4% and pay out -159.5% of their earnings in the form of a dividend. Charles River Associates has increased its dividend for 7 consecutive years. Charles River Associates lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

Charles River Associates has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Charles River Associates’ peers have a beta of 0.96, indicating that their average stock price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Charles River Associates and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Charles River Associates	$751.58 million	$54.78 million	26.32
Charles River Associates Competitors	$3.29 billion	$228.38 million	33.54

Charles River Associates’ peers have higher revenue and earnings than Charles River Associates. Charles River Associates 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Charles River Associates and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charles River Associates	0	1	1	0	2.50
Charles River Associates Competitors	1591	6474	9182	432	2.48

Charles River Associates presently has a consensus target price of $245.00, suggesting a potential upside of 23.95%. As a group, “Professional Services” companies have a potential upside of 27.39%. Given Charles River Associates’ peers higher possible upside, analysts clearly believe Charles River Associates has less favorable growth aspects than its peers.

Summary

Charles River Associates peers beat Charles River Associates on 11 of the 15 factors compared.

Charles River Associates Company Profile

CRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services worldwide. It advises clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through business strategy and performance-related issues. The company also offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in the areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. In addition, it offers management consulting services comprising strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, environmental, social and corporate governance and sustainability strategy and analysis, design and implementation of auction and bidding, new product pricing strategies, survey and market research, valuation of intellectual property and other assets, assessment of competitors’ actions, and analysis of new sources of supply. The company serves various industries, including communications and media; consumer, health, and wellness products; energy; entertainment and leisure; financial services; healthcare; life sciences; manufacturing and industries; natural resources; retail and distribution; technology; and transportation. CRA International, Inc. was incorporated in 1965 and is headquartered in Boston, Massachusetts.