Information Services Group (NASDAQ:III – Get Free Report) and Franklin Covey (NYSE:FC – Get Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Information Services Group and Franklin Covey, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Information Services Group | 0 | 1 | 1 | 1 | 3.00 |
| Franklin Covey | 0 | 0 | 1 | 0 | 3.00 |
Information Services Group presently has a consensus target price of $5.50, indicating a potential upside of 14.58%. Franklin Covey has a consensus target price of $35.00, indicating a potential upside of 42.28%. Given Franklin Covey’s higher possible upside, analysts plainly believe Franklin Covey is more favorable than Information Services Group.
Risk and Volatility
Earnings and Valuation
This table compares Information Services Group and Franklin Covey”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Information Services Group | $247.59 million | 0.93 | $2.84 million | $0.15 | 32.00 |
| Franklin Covey | $287.23 million | 1.11 | $23.40 million | $1.33 | 18.50 |
Franklin Covey has higher revenue and earnings than Information Services Group. Franklin Covey is trading at a lower price-to-earnings ratio than Information Services Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Information Services Group and Franklin Covey’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Information Services Group | 3.18% | 7.10% | 3.13% |
| Franklin Covey | 6.21% | 22.58% | 7.38% |
Institutional and Insider Ownership
73.1% of Information Services Group shares are held by institutional investors. Comparatively, 69.9% of Franklin Covey shares are held by institutional investors. 15.9% of Information Services Group shares are held by insiders. Comparatively, 15.5% of Franklin Covey shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Franklin Covey beats Information Services Group on 8 of the 13 factors compared between the two stocks.
About Information Services Group
Information Services Group, Inc., together with its subsidiaries, operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. The company offers digital transformation services, including automation, cloud, and data analytics; sourcing advisory; managed governance and risk; network carrier; technology strategy and operations design; change management; and market intelligence and technology research and analysis services. It supports private and public sector organizations to transform and optimize their operational environments. The company also provides ISG Digital, a client solution platform that helps clients developing technology, transformation, sourcing, and digital solutions; and ISG Enterprise, a client solution platform that helps clients manage change and optimize operations in areas comprising finance, human resource, and Procure2Pay. In addition, it offers ISG GovernX to automate the management of third-party supplier relationships that comprise contract and project lifecycles, and risk management; ISG Generative AI; ISG Network Select to streamline and simplify how enterprises build their network solutions; HR technology and transformations; providers-as-a-business services; ISG Digital Engineering; ISG Research; and training-as-a-service. The company serves private sector clients operating in the manufacturing, banking and financial services, insurance, health sciences, energy and utilities, and consumer services industries; and public sector clients, including state and local governments, airport and transit authorities, and national and provincial government units. Information Services Group, Inc. was founded in 2006 and is based in Stamford, Connecticut.
About Franklin Covey
Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
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