Forrester Research (NASDAQ:FORR – Get Free Report) is one of 205 public companies in the “Professional Services” industry, but how does it contrast to its peers? We will compare Forrester Research to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.
Dividends
Forrester Research pays an annual dividend of $0.80 per share and has a dividend yield of 6.9%. 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 2.7% and pay out -158.6% of their earnings in the form of a dividend.
Institutional & Insider 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 company insiders. Comparatively, 17.0% of shares of all “Professional Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forrester Research | 1 | 1 | 0 | 0 | 1.50 |
| Forrester Research Competitors | 1475 | 6292 | 9050 | 477 | 2.49 |
As a group, “Professional Services” companies have a potential upside of 37.75%. Given Forrester Research’s peers stronger consensus rating and higher possible upside, analysts clearly believe Forrester Research has less favorable growth aspects than its peers.
Volatility & Risk
Forrester Research has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Forrester Research’s peers have a beta of 0.95, suggesting that their average share price is 5% less volatile than the S&P 500.
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% |
Earnings and Valuation
This table compares Forrester Research and its peers gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Forrester Research | $381.04 million | -$119.36 million | -5.14 |
| Forrester Research Competitors | $3.31 billion | $226.41 million | 32.33 |
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.
Summary
Forrester Research peers beat Forrester Research on 12 of the 15 factors compared.
About Forrester Research
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.
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