Forrester Research (NASDAQ:FORR) and PAE (NASDAQ:PAE) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Valuation and Earnings
This table compares Forrester Research and PAE’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Forrester Research||$461.70 million||1.72||-$9.57 million||($0.52)||-80.42|
PAE has lower revenue, but higher earnings than Forrester Research. Forrester Research is trading at a lower price-to-earnings ratio than PAE, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Forrester Research and PAE, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Forrester Research currently has a consensus target price of $44.00, indicating a potential upside of 5.21%. Given Forrester Research’s higher probable upside, equities research analysts plainly believe Forrester Research is more favorable than PAE.
This table compares Forrester Research and PAE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
56.8% of Forrester Research shares are owned by institutional investors. Comparatively, 84.8% of PAE shares are owned by institutional investors. 42.4% of Forrester Research shares are owned by company insiders. Comparatively, 31.2% of PAE shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Forrester Research has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, PAE has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Forrester Research Company Profile
Forrester Research, Inc. operates as an independent research, data, and advisory services company in the United States and internationally. It operates through Products, Research, and SiriusDecisions segments. Its primary syndicated research product is Research, which offers clients with access to its research designed to inform their strategic decision-making. It also provides Playbooks, a set of integrated reports and tools to tackle critical business initiatives; SiriusDecisions Research that delivers operational intelligence and fact-based insight to functional marketing, sales, and product leaders of B2B organizations and their teams; and SiriusDecisions Command Center to offer performance benchmarking metrics in a self-service platform to aid sales, marketing, and product leaders in planning, uncovering new opportunities, and making business cases. In addition, it offers leadership boards that are peer groups for executives and other senior leaders at large organizations; executive programs with a trusted partner who help the executives and their teams establish and tackle their initiatives; and certification courses for leaders and their teams. Further, its analytics products and services include Customer Experience Index, a framework for assessing and measuring customer experience quality; Consumer Technographics, a quantitative research program; Business Technographics to provide assessments of what motivates businesses to choose certain technologies and vendors, as well as measures and reports on the current information consumption patterns of key influencers for technology purchases; FeedbackNow, a customer experience cloud solution; and ForecastView to provide a detailed evaluation of market size, based on expert analysis and quantitative insights from consumer and business surveys. Additionally, it offers advisory and project consulting services; and hosts various events. The company was founded in 1983 and is headquartered in Cambridge, Massachusetts.
PAE Company Profile
PAE Incorporated provides integrated services to support missions worldwide. The company offers defense support services specializing in aviation and ground vehicle maintenance at various levels, including aerospace ground equipment and precision measurement equipment; exercise/event planning, staging, and life support; logistics services that include supply chain management, warehousing, and training and curriculum development; base operations support, including engineering design/project management; facility operations and trade shops; utilities operations and maintenance; IT communications; transportation; morale welfare and recreation; billeting and dining/galley operations; federal health services; and clinic management and medical professional staffing. Its services include expeditionary construction; national army and police training, and civil infrastructure support; foreign assistance and global stability operations; and criminal justice sector development. Its customers include the U.S. government, international agencies, and foreign governments. The company was founded in 1955 and is based in Arlington, Virginia.