Contrasting PRGX Global (PRGX) & Forrester Research (NASDAQ:FORR)

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

Dividends

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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.

Profitability

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

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

Insider and Institutional Ownership

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forrester Research $337.67 million 2.38 $15.14 million $0.83 53.49
PRGX Global $161.62 million 1.32 $3.18 million $0.21 45.24

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.

Volatility and Risk

Forrester Research has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, PRGX Global has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Forrester Research and PRGX Global, as reported by MarketBeat.

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

PRGX Global has a consensus price target of $9.50, suggesting a potential upside of 0.00%. Given PRGX Global’s higher probable upside, analysts plainly believe PRGX Global is more favorable than Forrester Research.

Summary

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

Forrester Research Company Profile

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.

PRGX Global Company Profile

PRGX Global, Inc., together with its subsidiaries, provides recovery audit services to businesses and government agencies having payment transactions and procurement environments. It operates through three segments: Recovery Audit Services ? Americas, Recovery Audit Services – Europe/Asia-Pacific, and Adjacent Services. The company's recovery audit services are based on the mining of clients' purchasing related data for overpayments to the third-party suppliers. It also offers adjacent recovery services comprising advisory, analytics, and supplier information management (SIM) services, as well as PRGX OPTIX suite of analytics tools. The company serves retailers, such as discount, department, specialty, grocery, and drug stores, as well as wholesalers; business enterprises, including manufacturers, financial services firms, pharmaceutical companies, and resource companies, such as oil and gas companies; and federal and state government agencies. PRGX Global, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.

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