CRA International (NASDAQ:CRAI – Get Rating) and Verisk Analytics (NASDAQ:VRSK – Get Rating) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Risk & Volatility
CRA International has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Verisk Analytics has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.
Valuation & Earnings
This table compares CRA International and Verisk Analytics’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CRA International | $595.36 million | 1.19 | $43.45 million | $5.62 | 17.98 |
| Verisk Analytics | $2.50 billion | 13.10 | $953.90 million | $3.20 | 70.62 |
Analyst Recommendations
This is a breakdown of recent recommendations for CRA International and Verisk Analytics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CRA International | 0 | 0 | 1 | 0 | 3.00 |
| Verisk Analytics | 0 | 3 | 8 | 0 | 2.73 |
CRA International currently has a consensus target price of $133.00, suggesting a potential upside of 31.63%. Verisk Analytics has a consensus target price of $215.50, suggesting a potential downside of 4.63%. Given CRA International’s stronger consensus rating and higher possible upside, equities analysts clearly believe CRA International is more favorable than Verisk Analytics.
Profitability
This table compares CRA International and Verisk Analytics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CRA International | 6.91% | 20.65% | 7.52% |
| Verisk Analytics | 18.19% | 57.53% | 13.97% |
Insider and Institutional Ownership
88.0% of CRA International shares are owned by institutional investors. Comparatively, 93.6% of Verisk Analytics shares are owned by institutional investors. 5.3% of CRA International shares are owned by insiders. Comparatively, 1.3% of Verisk Analytics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Dividends
CRA International pays an annual dividend of $1.44 per share and has a dividend yield of 1.4%. Verisk Analytics pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. CRA International pays out 25.6% of its earnings in the form of a dividend. Verisk Analytics pays out 42.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CRA International has raised its dividend for 6 consecutive years and Verisk Analytics has raised its dividend for 4 consecutive years. CRA International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Verisk Analytics beats CRA International on 9 of the 17 factors compared between the two stocks.
About CRA International
CRA International, Inc., together with its subsidiaries, provides economic, financial, and management consulting services in the United States, the United Kingdom, and internationally. 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, new product pricing strategies, 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 Verisk Analytics
Verisk Analytics, Inc. provides data analytics solutions to the insurance markets in the United States and internationally. The company provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, and various other fields. It focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty insurance customers, as well as develops machine learned and artificially intelligent models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.
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