Analyzing PRGX Global (PRGX) and Forrester Research (FORR)

PRGX Global (NASDAQ: PRGX) and Forrester Research (NASDAQ:FORR) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares PRGX Global and Forrester Research’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PRGX Global 1.97% 5.65% 2.90%
Forrester Research 4.48% 11.28% 4.65%



Dividends

Forrester Research pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. PRGX Global does not pay a dividend. Forrester Research pays out 96.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and target prices for PRGX Global and Forrester Research, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PRGX Global 0 0 2 0 3.00
Forrester Research 0 0 0 0 N/A

PRGX Global currently has a consensus price target of $9.50, indicating a potential upside of 0.53%. Given PRGX Global’s higher probable upside, equities research analysts plainly believe PRGX Global is more favorable than Forrester Research.

Earnings and Valuation

This table compares PRGX Global and Forrester Research’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PRGX Global $161.62 million 1.31 $3.18 million $0.21 45.00
Forrester Research $337.67 million 2.31 $15.14 million $0.83 52.11

Forrester Research has higher revenue and earnings than PRGX Global. PRGX Global is trading at a lower price-to-earnings ratio than Forrester Research, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

71.0% of PRGX Global shares are owned by institutional investors. Comparatively, 59.8% of Forrester Research shares are owned by institutional investors. 15.0% of PRGX Global shares are owned by insiders. Comparatively, 43.5% of Forrester Research shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

PRGX Global has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Forrester Research has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Summary

Forrester Research beats PRGX Global on 9 of the 15 factors compared between the two stocks.

About PRGX Global

PRGX Global, Inc. (PRGX), together with its subsidiaries, provides recovery audit and spend analytics services. The Company provides recovery audit, procure-to-pay performance improvement, spend analytics and risk management services principally to large businesses and government agencies. The Company operates through three segments: Recovery Audit Services-Americas, Recovery Audit Services-Europe/Asia-Pacific and Adjacent Services. The Recovery Audit Services-Americas segment represents recovery audit services the Company provides in the United States, Canada and Latin America. The Recovery Audit Services-Europe/Asia-Pacific segment represents recovery audit services it provides in Europe, Asia and the Pacific region. The Adjacent Services segment includes spend analytics (data transformation and cost harmonization), Supplier Information Management (SIM) and Chartered Institute of Purchasing & Supply (CIPS) Sustainability Index (CSI).

About Forrester Research

Forrester Research, Inc. (Forrester) is an independent research, data, and advisory services firm. The Company offers research, data, advisory and related services that are thematic, prescriptive and executable, and that provide a perspective on the changing business environment. Its segments include Research, Product and Project Consulting. The Research segment is responsible for writing the research and performing the Webinars and inquiries for its Research and Connect products. The Product segment includes the product management organization that is responsible for product pricing and packaging and the launch of new products. In addition, this segment includes its Data, Connect and Events organizations. The Project Consulting segment offers project consulting services. Its products and services are categorized into Forrester Research, Forrester Connect, Forrester Data, Forrester Consulting and Forrester Events.

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