CRA International,Inc. (NASDAQ: CRAI) and RPX Corporation (NASDAQ:RPXC) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional & Insider Ownership
85.6% of CRA International,Inc. shares are held by institutional investors. Comparatively, 88.8% of RPX Corporation shares are held by institutional investors. 4.7% of CRA International,Inc. shares are held by insiders. Comparatively, 3.5% of RPX Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares CRA International,Inc. and RPX Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
CRA International,Inc. has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, RPX Corporation has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
Earnings & Valuation
This table compares CRA International,Inc. and RPX Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CRA International,Inc.||$332.04 million||1.02||$27.50 million||$1.39||28.41|
|RPX Corporation||$335.88 million||1.98||$208.80 million||$0.39||35.08|
RPX Corporation has higher revenue and earnings than CRA International,Inc.. CRA International,Inc. is trading at a lower price-to-earnings ratio than RPX Corporation, indicating that it is currently the more affordable of the two stocks.
CRA International,Inc. pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. RPX Corporation does not pay a dividend. CRA International,Inc. pays out 40.3% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations for CRA International,Inc. and RPX Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RPX Corporation has a consensus price target of $13.33, suggesting a potential downside of 2.53%. Given RPX Corporation’s higher possible upside, analysts clearly believe RPX Corporation is more favorable than CRA International,Inc..
RPX Corporation beats CRA International,Inc. on 10 of the 15 factors compared between the two stocks.
About CRA International,Inc.
CRA International, Inc. is a global consulting firm. The Company provides economic, financial and management consulting services. The Company consulting services in two areas: litigation, regulatory, and financial consulting and management consulting. The Company provides services, such as economic capability, analyses and testimony in areas, such as Antitrust & Competition; Damages & Valuation; Financial Accounting & Valuation; Financial Economics; Forensic & Cyber Investigations; Insurance Economics; Intellectual Property; International Arbitration; Labor & Employment; Mergers & Acquisitions; Regulatory Economics & Compliance; Securities & Financial Markets, and Transfer Pricing. It offers management consulting in the areas, including Auctions & Competitive Bidding; Corporate & Business Strategy; Enterprise Risk Management; Environmental & Energy Strategy; Intellectual Property & Technology Management; Organization & Performance Improvement, and Transaction Advisory Services.
About RPX Corporation
RPX Corporation is engaged in providing an alternative to litigation through its patent risk management services. The Company helps companies reduce patent litigation risk and corporate legal expense through two primary service offerings: patent risk management services and discovery services. It operates through two segments: patent risk management and discovery services. Its patent risk management segment generates its revenues from membership subscriptions, premiums earned from insurance policies, and management fees for marketing, underwriting, and claim management. Its discovery services segment generates its revenues from fees generated for data collection, hosting and processing, project management, and document review services. The Company serves clients in a range of industries, including consumer electronics, personal computers, e-commerce, financial services, software, media content and distribution, mobile communications and handsets, networking and semiconductors.
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