Forrester Research (NASDAQ:FORR – Get Free Report) and Cass Information Systems (NASDAQ:CASS – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Profitability
This table compares Forrester Research and Cass Information Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Forrester Research | -20.45% | 7.40% | 3.18% |
| Cass Information Systems | 10.71% | 8.84% | 0.89% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Forrester Research and Cass Information Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forrester Research | 0 | 1 | 0 | 0 | 2.00 |
| Cass Information Systems | 0 | 0 | 1 | 0 | 3.00 |
Valuation & Earnings
This table compares Forrester Research and Cass Information Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Forrester Research | $432.47 million | 0.46 | -$5.75 million | ($4.57) | -2.28 |
| Cass Information Systems | $199.19 million | 3.06 | $19.17 million | $1.52 | 30.06 |
Cass Information Systems has lower revenue, but higher earnings than Forrester Research. Forrester Research is trading at a lower price-to-earnings ratio than Cass Information Systems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
55.2% of Forrester Research shares are owned by institutional investors. Comparatively, 59.1% of Cass Information Systems shares are owned by institutional investors. 39.2% of Forrester Research shares are owned by company insiders. Comparatively, 3.2% of Cass Information Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Forrester Research has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Cass Information Systems has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.
Summary
Cass Information Systems beats Forrester Research on 10 of the 14 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 Cass Information Systems
Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company operates through two segments, Information Services and Banking Services. Its services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The company also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions, as well as church management software solution and on-line platform to provide generosity services for faith-based and non-profit organizations. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as demand, savings, time, and money market deposits; commercial, industrial, commercial real estate, and construction and land development loans; and cash management services to privately held businesses, restaurant franchises, and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and leased facilities in Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in Saint Louis, Missouri.
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