Information Services Group (NASDAQ:III – Get Free Report) and Charles River Associates (NASDAQ:CRAI – Get Free Report) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Earnings and Valuation
This table compares Information Services Group and Charles River Associates”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Information Services Group | $241.29 million | 1.05 | $2.84 million | $0.19 | 27.63 |
| Charles River Associates | $731.06 million | 1.62 | $46.65 million | $8.32 | 21.68 |
Dividends
Information Services Group pays an annual dividend of $0.18 per share and has a dividend yield of 3.4%. Charles River Associates pays an annual dividend of $2.28 per share and has a dividend yield of 1.3%. Information Services Group pays out 94.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Charles River Associates pays out 27.4% of its earnings in the form of a dividend. Information Services Group has increased its dividend for 1 consecutive years and Charles River Associates has increased its dividend for 7 consecutive years.
Profitability
This table compares Information Services Group and Charles River Associates’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Information Services Group | 3.27% | 6.87% | 3.14% |
| Charles River Associates | 7.93% | 25.51% | 9.12% |
Risk & Volatility
Information Services Group has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Charles River Associates has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Information Services Group and Charles River Associates, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Information Services Group | 0 | 2 | 1 | 1 | 2.75 |
| Charles River Associates | 0 | 0 | 2 | 0 | 3.00 |
Information Services Group presently has a consensus price target of $7.00, suggesting a potential upside of 33.33%. Charles River Associates has a consensus price target of $239.00, suggesting a potential upside of 32.52%. Given Information Services Group’s higher probable upside, equities analysts plainly believe Information Services Group is more favorable than Charles River Associates.
Institutional and Insider Ownership
73.1% of Information Services Group shares are owned by institutional investors. Comparatively, 84.1% of Charles River Associates shares are owned by institutional investors. 15.9% of Information Services Group shares are owned by company insiders. Comparatively, 4.7% of Charles River Associates shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Charles River Associates beats Information Services Group on 12 of the 18 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 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.
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