Financial Comparison: CRA International,Inc. (CRAI) & RPX Corporation (RPXC)

RPX Corporation (NASDAQ: RPXC) and CRA International,Inc. (NASDAQ:CRAI) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Volatility & Risk

RPX Corporation has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, CRA International,Inc. has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

90.4% of RPX Corporation shares are owned by institutional investors. Comparatively, 85.6% of CRA International,Inc. shares are owned by institutional investors. 3.5% of RPX Corporation shares are owned by company insiders. Comparatively, 4.7% of CRA International,Inc. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares RPX Corporation and CRA International,Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RPX Corporation 6.01% 5.51% 3.65%
CRA International,Inc. 3.47% 5.89% 3.89%

Earnings & Valuation

This table compares RPX Corporation and CRA International,Inc.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RPX Corporation $333.21 million 1.84 $208.73 million $0.39 31.69
CRA International,Inc. $342.99 million 0.87 $29.38 million $1.39 26.24

RPX Corporation has higher revenue, but lower 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.

Dividends

CRA International,Inc. pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. RPX Corporation does not pay a dividend. CRA International,Inc. pays out 40.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for RPX Corporation and CRA International,Inc., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RPX Corporation 1 1 1 0 2.00
CRA International,Inc. 0 0 0 0 N/A

RPX Corporation currently has a consensus target price of $13.33, suggesting a potential upside of 7.87%. Given RPX Corporation’s higher possible upside, equities analysts clearly believe RPX Corporation is more favorable than CRA International,Inc..

Summary

RPX Corporation beats CRA International,Inc. on 9 of the 15 factors compared between the two stocks.

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.

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.

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