R C M Technologies (NASDAQ:RCMT) and Kelly Services (NASDAQ:KELYA) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
28.5% of R C M Technologies shares are held by institutional investors. Comparatively, 67.0% of Kelly Services shares are held by institutional investors. 12.2% of R C M Technologies shares are held by insiders. Comparatively, 12.1% of Kelly Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for R C M Technologies and Kelly Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|R C M Technologies||0||0||0||0||N/A|
Kelly Services has a consensus target price of $37.00, indicating a potential upside of 58.05%. Given Kelly Services’ higher possible upside, analysts clearly believe Kelly Services is more favorable than R C M Technologies.
Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.3%. R C M Technologies does not pay a dividend. Kelly Services pays out 13.6% of its earnings in the form of a dividend.
This table compares R C M Technologies and Kelly Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|R C M Technologies||1.21%||29.57%||9.39%|
Risk and Volatility
R C M Technologies has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
Earnings and Valuation
This table compares R C M Technologies and Kelly Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|R C M Technologies||$186.74 million||0.29||$2.01 million||N/A||N/A|
|Kelly Services||$5.37 billion||0.17||$71.60 million||$2.20||10.64|
Kelly Services has higher revenue and earnings than R C M Technologies.
Kelly Services beats R C M Technologies on 8 of the 14 factors compared between the two stocks.
About R C M Technologies
RCM Technologies, Inc. provides business and technology solutions to the commercial and government sectors in the United States, Canada, the Puerto Rico, and Serbia. The company operates through three segments: Engineering, Specialty Health Care, and Information Technology. The Engineering segment provides 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 Services 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 offers enterprise business solutions, application services, infrastructure solutions, competitive advantage and productivity solutions, life sciences solutions, and other vertical market specific solutions. The company also serves aerospace/defense, educational institution, energy, financial services, health care, life sciences, manufacturing and distribution, and the public sector and technology industries. RCM Technologies, Inc. was founded in 1971 and is headquartered in Pennsauken, New Jersey.
About Kelly Services
Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries worldwide. The company operates through three segments: Americas Staffing, Global Talent Solutions (GTS), and International Staffing. It provides trained employees for data entry, clerical, and administrative support roles across various industries; schools with instructional and non-instructional employees; support staff for seminars, sales, and trade shows; assemblers, quality control inspectors, and technicians for electronic assembly; maintenance workers, material handlers, and assemblers for light industrial works; scientists, and scientific and clinical research workforce solutions; engineering professionals across various disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications. The company also provides IT specialists across various disciplines; creative talent in the spectrum of creative services positions; corporate finance departments, accounting firms, and financial institutions with various levels of financial professionals; and legal professionals, including attorneys, paralegals, contract administrators, compliance specialists, and legal administrators. In addition, it provides chefs, porters, and hospitality representatives; and manual workers and semi-skilled professionals in various trade, non-trade, and operational positions. Further, the company provides centrally delivered staffing for large accounts; contingent workforce outsourcing, recruitment process outsourcing, business process outsourcing, and payroll process outsourcing services; contact center staffing solutions; and legal managed services, as well as executive placement, career transition/outplacement, and talent advisory services. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.
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