Forrester Research (NASDAQ:FORR – Get Free Report) and DLH (NASDAQ:DLHC – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.
Risk & Volatility
Forrester Research has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, DLH has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
Earnings and Valuation
This table compares Forrester Research and DLH”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Forrester Research | $396.89 million | 0.61 | -$119.36 million | ($2.25) | -5.62 |
| DLH | $344.50 million | 0.17 | $1.36 million | ($1.48) | -2.75 |
DLH has lower revenue, but higher earnings than Forrester Research. Forrester Research is trading at a lower price-to-earnings ratio than DLH, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
55.2% of Forrester Research shares are held by institutional investors. Comparatively, 67.2% of DLH shares are held by institutional investors. 40.7% of Forrester Research shares are held by company insiders. Comparatively, 12.8% of DLH shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Forrester Research and DLH’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Forrester Research | -11.17% | 6.19% | 1.93% |
| DLH | -8.51% | -10.42% | -4.04% |
Analyst Recommendations
This is a summary of recent recommendations for Forrester Research and DLH, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forrester Research | 1 | 1 | 0 | 0 | 1.50 |
| DLH | 2 | 0 | 1 | 0 | 1.67 |
Summary
DLH beats Forrester Research on 8 of the 13 factors compared between the two stocks.
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.
About DLH
DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. It offers digital transformation and cyber security solutions, including artificial intelligence and machine learning, cloud enablement, cybersecurity ecosystem, big data analytics, and modeling and simulation to the National Institutes of Health (NIH), the Defense Health Agency, Tele-medicine and Advanced Technology Research Center, and US Navy Naval Information Warfare Center (NIWC). The company also provides science research and development services and solutions, such as data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions, including NIH and the Center for Disease Control and Prevention, as well as the Military Health System. In addition, it offers system engineering and integration solutions in the areas of pharmaceutical delivery logistics, fire protection engineering, biomedical equipment, and technology engineering on behalf of the Department of Veterans Affairs, NIWC, Health and Human Services, and other federal customers. The company also provides business process management services under the trademarks, e-PRAT and SPOT-m, as well as the registered trademark, Infinibyte for cloud-based solutions. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.
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