Charles River Associates (CRAI) vs Forrester Research, Inc. (FORR)

Charles River Associates and Forrester Research, Inc. are both Consulting Services companies. Charles River Associates is the larger, with a market value of $1.0B against $220.3M — 4.6× the size. Forrester Research, Inc. has negative trailing earnings, so its P/E is not meaningful; Charles River Associates trades at 21.4×. Charles River Associates grew revenue faster over the last twelve months: 11.5% against −7.54%. Charles River Associates has the higher net margin (6.19% vs −11.2%) and the higher return on invested capital (13.1% vs −115.7%). Across the 20 metrics below, Charles River Associates leads on 11 and Forrester Research, Inc. on 9.

Valuation

Metric CRAI FORR Consulting Services median
P/E 21.35 n/m 17.19
P/S 1.29 0.58 1.14
P/B 5.66 1.82 2.36
Price to free cash flow n/m 72.93 13.31
EV/EBITDA 12.20 17.72 10.61
EV/Sales 1.66 0.42 1.44
Earnings yield 4.68% (19.65%) 4.50%
Free cash flow yield (2.70%) 1.37% 0.00%

Profitability

Metric CRAI FORR Consulting Services median
Gross margin 29.01% 57.01% 45.25%
Operating margin 9.99% (12.54%) 9.60%
Net margin 6.19% (11.17%) 6.29%
Free cash flow margin (3.49%) 0.80% 0.00%
Return on equity 25.99% (30.28%) 0.00%
Return on assets 7.66% (9.99%) 0.00%
Return on invested capital 13.08% (115.69%) 0.00%

Growth

Metric CRAI FORR Consulting Services median
Revenue growth (TTM) 11.46% (7.54%) (0.96%)
EPS growth (last fiscal year) 20.77% (1,993.33%) —
Revenue growth, 5-year CAGR 8.13% (2.44%) 7.37%
Net income growth, 5-year CAGR 17.50% 0.00% 4.89%

Health

Metric CRAI FORR Consulting Services median
Debt to equity 1.20 0.29 0.00
Current ratio 0.82 1.06 1.72
Net debt to EBITDA 0.14 (4.88) 0.23

Dividend

Metric CRAI FORR Consulting Services median
Dividend yield 1.38% — 1.07%
Payout ratio 0.26 0.00 0.16

Size

Metric CRAI FORR Consulting Services median
Market cap 1.02b 220.28m 151.24m

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