Financial Comparison: Forrester Research (NASDAQ:FORR) versus CACI International (NYSE:CACI)

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

Volatility & Risk

CACI International has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Forrester Research has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CACI International	5.70%	15.92%	7.09%
Forrester Research	-21.06%	9.18%	3.55%

Institutional and Insider Ownership

86.4% of CACI International shares are held by institutional investors. Comparatively, 55.2% of Forrester Research shares are held by institutional investors. 1.1% of CACI International shares are held by insiders. Comparatively, 39.2% of Forrester Research shares are held by 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

This is a summary of current ratings and recommmendations for CACI International and Forrester Research, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CACI International	0	3	13	0	2.81
Forrester Research	2	1	0	0	1.33

CACI International currently has a consensus price target of $619.85, indicating a potential upside of 9.22%. Given CACI International’s stronger consensus rating and higher possible upside, research analysts plainly believe CACI International is more favorable than Forrester Research.

Valuation & Earnings

This table compares CACI International and Forrester Research”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CACI International	$8.63 billion	1.45	$499.83 million	$22.65	25.06
Forrester Research	$432.47 million	0.32	-$5.75 million	($4.51)	-1.59

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

Summary

CACI International beats Forrester Research on 12 of the 14 factors compared between the two stocks.

About CACI International

CACI International Inc, through its subsidiaries, engages in the provision of expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors. The company operates through two segments, Domestic Operations and International Operations. The Domestic Operations segment offers digital solutions by modernizing enterprise and agency-unique applications, enterprise infrastructure, and business processes; C4ISR solutions, including command, control, communications, and computer (C4), as well as intelligence, surveillance, and reconnaissance (ISR) technology and networks; and cyber solutions for cybersecurity, cyberspace, electronic warfare, and signals intelligence operations. This segment also provides space solutions, comprising intelligence fusion, data analytic, and decision support, as well as logistics solutions; engineering services, such as platform integration, modernization and sustainment, system engineering, naval architecture, training and simulation, and logistics engineering; design, implement, protect, and manage secure enterprise IT solutions for federal agencies; and mission support solutions, that include analytic services, as well as scenario-based instruction across the spectrum of intelligence processing, collection, and products. The International Operations segment provides a range of IT services, proprietary data, and software products to the commercial and government customers in the United Kingdom, continental Europe, and internationally. The company was founded in 1962 and is headquartered in Reston, Virginia.

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.