R C M Technologies (NASDAQ:RCMT) and ManpowerGroup (NYSE:MAN) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
This table compares R C M Technologies and ManpowerGroup’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|R C M Technologies||1.55%||16.09%||5.24%|
R C M Technologies has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, ManpowerGroup has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.
Insider and Institutional Ownership
26.6% of R C M Technologies shares are owned by institutional investors. Comparatively, 91.1% of ManpowerGroup shares are owned by institutional investors. 12.2% of R C M Technologies shares are owned by company insiders. Comparatively, 1.5% of ManpowerGroup shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
ManpowerGroup pays an annual dividend of $2.02 per share and has a dividend yield of 2.3%. R C M Technologies does not pay a dividend. ManpowerGroup pays out 22.6% of its earnings in the form of a dividend. ManpowerGroup has raised its dividend for 8 consecutive years.
This is a breakdown of current ratings and target prices for R C M Technologies and ManpowerGroup, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|R C M Technologies||0||0||1||0||3.00|
R C M Technologies presently has a consensus target price of $6.00, suggesting a potential upside of 84.62%. ManpowerGroup has a consensus target price of $97.09, suggesting a potential upside of 9.24%. Given R C M Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe R C M Technologies is more favorable than ManpowerGroup.
Valuation & Earnings
This table compares R C M Technologies and ManpowerGroup’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|R C M Technologies||$200.35 million||0.21||$2.71 million||$0.31||10.48|
|ManpowerGroup||$21.99 billion||0.24||$556.70 million||$8.95||9.93|
ManpowerGroup has higher revenue and earnings than R C M Technologies. ManpowerGroup is trading at a lower price-to-earnings ratio than R C M Technologies, indicating that it is currently the more affordable of the two stocks.
ManpowerGroup beats R C M Technologies on 12 of the 17 factors compared between the two stocks.
R C M Technologies Company Profile
RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia. It operates through three segments: Engineering, Specialty Health Care, and Information Technology. The Engineering segment offers a range of engineering services, including project management engineering and design, engineering analysis, engineer-procure-construct, configuration management, hardware/software validation and verification, quality assurance, technical writing and publications, manufacturing process planning and improvement, and 3D/BIM integrated design. The Specialty Health Care segment provides long-term and short-term staffing, executive search, and placement services in the fields of rehabilitation, including physical therapists, occupational therapists, and speech language pathologists; nursing; managed care; allied health care; health care management; medical office support; and non-medical caregivers or companions. This segment also offers in-patient, outpatient, sub-acute and acute care, multilingual speech pathology, rehabilitation, geriatric, pediatric, and adult day care services to hospitals, long-term care facilities, schools, sports medicine facilities, and private practices. The Information Technology segment provides enterprise business solutions, application services, infrastructure solutions, competitive advantage and productivity solutions, life sciences solutions, and other vertical market specific solutions. The company serves aerospace and defense, energy, financial services, health care, life sciences, manufacturing and distribution, and technology industries, as well as educational institutions and the public sector. RCM Technologies, Inc. was founded in 1971 and is headquartered in Pennsauken, New Jersey.
ManpowerGroup Company Profile
ManpowerGroup Inc. provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands. It also offers various assessment services; training and development services; career management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based solutions in information technology, engineering, and finance fields; solutions in the areas of organizational efficiency, individual development, and career mobility; and recruitment process outsourcing, TAPFIN managed, and talent based outsourcing services, as well as Proservia services in the areas of digital services market and IT infrastructure sector. It operates through a network of approximately 2,600 offices in 80 countries and territories. The company was founded in 1948 and is based in Milwaukee, Wisconsin.
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