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It means that he is not as good of a breeder as your first stud. The Pearl stud is a better quality horse than the horse you want to use as a future stud.

I am not able to see this. I have tried several times to see it. I also did a comparison test between my Halloween Dancer stallion and 2G peroletta. And it said that 2g is superior to Dancer. Is dancer still a well breeding stud?

Here is Halloween Dancer.
http://hj2.huntandjump.com/horse.php?horseid=300313

Here is 2g Pearlotta
http://hj2.huntandjump.com/horse.php?horseid=448639

Ok thank you. I got to it now. That link worked.

What are you trying to "see" (find)? The test tells you which horse is superior, for breeding purpose. You want a 2nd gen to be better than a founation, a 3rd gen to be better than a 2nd gen, etc.
Dancer is a nice horse, for a foundation, but even then, there are different levels horses can be in foundations. Most are going to be about the same, but some like Expro's and Exper's are going to be better.
Pearlotta is a good horse for breeding as a 2nd gen stud (from what testing you have done on him so far it shows he is better than a foundation stud, and better than your other 2nd gen stud.
Most people when they test their studs, find which one is the "benchmark" stud, the best of the bunch from the same generation, and test their same generation horses against it as they create more foals, to see if they are better than the benchmark. If so, it becomes the new benchmark stud. But they also test the next generation studs against it too, so if your benchmark horse is Pearlotta, who is a 2nd gen, you would check a 3rd gen stud against him to see if he is a better breeder than Pearlotta. If you did and it stated "so and so is as good as Pearlotta, then you know that the 3rd gen you tested against him is only as good as you best 2nd gen stud, and you want them to be better. Once you find a 3rd gen horse that is better than Pearlotta, then you can test other 3rd gens against him to see how they rank. If you get one better than the one you tested, he becomes your new 3rd gen benchmark stud unless you breed something better.

This is how I understand it anyway, and I could be wrong about some of it, or all of it, and I don't quite practice it myself, as it takes quite a bit of hb's to test the horses against each other to find your benchmark stud, but if you can do it, go for it and you will be breeding your horses better that way.

If someone else wants to chime in and make it clearer, please do!

Edit: LOL, late again. Looks like you got great info from CF. :)

Ok yeah I am learning and didn't look at their homepages. I think I am getting it now though. I had never done the comparison before and right now Dancer and Pearlotta are my primary stallions that I breed to and my Best friend foal has the genes I wanted to get into tobiano rabicano genes and pearlotta has my pearl gene.

So was trying to figure out if BF foal would ne a good stud in the future. Now that you all have explained it it is making sense.

So now I will just compare the studs in their own generation. Thank you.

I went through my barns and now am keeping a log what generation my horses are so that I don't compare 2 different generations. It will take some time but I think I will be able to figure out my better stallions.

Best--you may want to paper your colts before you compare them. So if this colt papers B, you can fairly safely assume that he is at least a tad bit better than his dad. At that point comparing to his dad becomes an exercise in trying to figure out how much better he is--is he AGA and therefore truly just a tad better, or is he Superior?

If he papers C like his dad, you could compare to see if he's inferior, AGA or superior...but if he papers C you may not want to keep him intact at all...in which case you can skip the expensive comparison test!