Charles River Associates (NASDAQ:CRAI – Get Free Report) and Franklin Covey (NYSE:FC – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Insider and Institutional Ownership
84.1% of Charles River Associates shares are owned by institutional investors. Comparatively, 69.9% of Franklin Covey shares are owned by institutional investors. 4.7% of Charles River Associates shares are owned by insiders. Comparatively, 15.5% of Franklin Covey shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Charles River Associates and Franklin Covey, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Charles River Associates | 0 | 0 | 1 | 0 | 3.00 |
| Franklin Covey | 0 | 0 | 2 | 0 | 3.00 |
Profitability
This table compares Charles River Associates and Franklin Covey’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Charles River Associates | 7.31% | 25.88% | 9.44% |
| Franklin Covey | 3.81% | 19.08% | 6.12% |
Volatility & Risk
Charles River Associates has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Franklin Covey has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
Valuation and Earnings
This table compares Charles River Associates and Franklin Covey”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Charles River Associates | $687.41 million | 1.76 | $46.65 million | $7.41 | 23.92 |
| Franklin Covey | $279.94 million | 0.87 | $23.40 million | $0.79 | 24.46 |
Charles River Associates has higher revenue and earnings than Franklin Covey. Charles River Associates is trading at a lower price-to-earnings ratio than Franklin Covey, indicating that it is currently the more affordable of the two stocks.
Summary
Charles River Associates beats Franklin Covey on 9 of the 13 factors compared between the two stocks.
About Charles River Associates
CRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services worldwide. It advises clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through business strategy and performance-related issues. The company also offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in the areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. In addition, it offers management consulting services comprising strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, environmental, social and corporate governance and sustainability strategy and analysis, design and implementation of auction and bidding, new product pricing strategies, survey and market research, valuation of intellectual property and other assets, assessment of competitors’ actions, and analysis of new sources of supply. The company serves various industries, including communications and media; consumer, health, and wellness products; energy; entertainment and leisure; financial services; healthcare; life sciences; manufacturing and industries; natural resources; retail and distribution; technology; and transportation. CRA International, Inc. was incorporated in 1965 and is headquartered in Boston, Massachusetts.
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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