The feasibility of developing a refined national reporting classification system for colleges and universities to complement the present classification system of the National Center for Higher Education Management Systems (NCHEMS) which categorizes institutions into five major classes was studied. For some types of national reporting the NCHEMS classification may be too broadly defined, and creating more specialized institutional groupings might facilitate comparisons among peer institutions. Eight data variables were used to sector the 1,316 four-year institutions, presently categorized as Major Doctoral, Comprehensive, and General Baccalaureate. It was concluded that the current NCHEMS classification system ought to be left as it is and that it is not workable to create in advance lists of institutions that will be truly appropriate comparison groups for a significant set of potential users. A procedure to create lists of such comparison groups is currently available using the NCHEMS database and technical assistance. The forms that are used to facilitate this process are appended (i.e., criteria selection forms). Also appended are lists of alternate groupings for institutions using three NCHEMS school categories, as well as public/private control, land grant status, and the presence/absence of a medical school on campus. Information is included on three procedures used to create groups of institutions for comparative purposes: sectoring, clustering, factor analysis. (SW)