Franklin Covey (NYSE:FC – Get Free Report) and Charles River Associates (NASDAQ:CRAI – 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 profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
69.9% of Franklin Covey shares are held by institutional investors. Comparatively, 84.1% of Charles River Associates shares are held by institutional investors. 15.5% of Franklin Covey shares are held by insiders. Comparatively, 5.2% of Charles River Associates shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Franklin Covey and Charles River Associates’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin Covey | 6.21% | 22.58% | 7.38% |
| Charles River Associates | 7.31% | 25.88% | 9.44% |
Risk & Volatility
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Franklin Covey and Charles River Associates, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin Covey | 0 | 0 | 1 | 0 | 3.00 |
| Charles River Associates | 0 | 0 | 1 | 0 | 3.00 |
Franklin Covey presently has a consensus price target of $35.00, suggesting a potential upside of 49.53%. Charles River Associates has a consensus price target of $228.00, suggesting a potential upside of 21.91%. Given Franklin Covey’s higher possible upside, research analysts clearly believe Franklin Covey is more favorable than Charles River Associates.
Valuation and Earnings
This table compares Franklin Covey and Charles River Associates”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin Covey | $287.23 million | 1.06 | $23.40 million | $1.33 | 17.60 |
| Charles River Associates | $687.41 million | 1.85 | $46.65 million | $7.41 | 25.24 |
Charles River Associates has higher revenue and earnings than Franklin Covey. Franklin Covey is trading at a lower price-to-earnings ratio than Charles River Associates, indicating that it is currently the more affordable of the two stocks.
Summary
Charles River Associates beats Franklin Covey on 10 of the 12 factors compared between the two stocks.
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.
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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