Forrester Research vs Peers: Lags on 12 of 13 Factors

Key Facts

Industry: Professional Services (205 companies)
Beta (FORR): 0.93 (7% less volatile than S&P 500)
Beta (Peers): 0.95 (5% less volatile than S&P 500)
Institutional Ownership (FORR): 55.2%
Institutional Ownership (Peers): 57.3%
Insider Ownership (FORR): 40.7%

Background

Forrester Research, Inc. (NASDAQ:FORR) is an independent research and advisory company operating in the United States and internationally. It was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.

The company operates in three segments: Research, Consulting, and Events. Its Research segment offers subscription services such as Forrester Decisions, Forrester Research, and SiriusDecisions Research, providing trend forecasts, market data, benchmarking, and vendor evaluations. The Consulting segment delivers advisory projects and strategy development, while the Events segment hosts conferences on marketing, sales, customer experience, security, and innovation.

Forrester is one of 205 publicly-traded companies in the Professional Services industry. A recent analysis by TickerReport compared Forrester with its peers on valuation, earnings, analyst recommendations, institutional ownership, risk, dividends, and profitability.

Current Situation

According to the TickerReport analysis, Forrester Research's peers beat the company on 12 of the 13 factors compared. The report notes that analysts believe Forrester has less favorable growth aspects than its peers, based on a stronger consensus rating and higher probable upside for the peer group.

The report states that Professional Services companies as a group have a potential upside of 36.23%. Forrester's beta is 0.93, indicating its stock price is 7% less volatile than the S&P 500, while its peers have an average beta of 0.95, suggesting 5% less volatility than the S&P 500.

Institutional investors own 55.2% of Forrester shares, compared to 57.3% for the peer group. Insider ownership stands at 40.7% for Forrester, versus 17.0% for peers. The report suggests strong institutional ownership indicates confidence from large money managers.

Forrester Research vs. Peers: Key Metrics
Metric	Forrester Research	Peers
Beta	0.93	0.95
Institutional Ownership	55.2%	57.3%
Insider Ownership	40.7%	17.0%
Potential Upside	Not provided	36.23%

Data from TickerReport comparison. Potential upside for Forrester not provided in source.

Impacts

The comparison suggests that Forrester Research may face challenges in attracting investor confidence relative to its peers, given its lower consensus rating and lower potential upside. This could affect its stock valuation and ability to raise capital.

Forrester's higher insider ownership (40.7%) compared to peers (17.0%) may indicate that company insiders have a significant stake, which could align management interests with shareholders but also limit public float.

The report's findings could influence investor decisions, as those seeking growth may prefer peer companies with higher projected upside. However, Forrester's lower volatility (beta 0.93) might appeal to risk-averse investors.

Future Outlook

Scenario analysis: The possibilities below are not certain predictions.

If Forrester Research fails to improve its growth prospects relative to peers, it may continue to lag in analyst ratings and investor interest. The company could potentially address this by enhancing its research offerings or expanding into new markets.

Should the Professional Services industry maintain a potential upside of 36.23%, Forrester may need to demonstrate stronger earnings growth to close the gap with peers. Alternatively, if market conditions shift, Forrester's lower volatility could become a comparative advantage.

The outlook remains uncertain, and the report does not provide specific forecasts for Forrester's future performance. Investors should consider both the comparative weaknesses and Forrester's unique position as an independent research firm.

Source: tickerreport.com

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