RCM Technologies (NASDAQ:RCMT – Get Free Report) and Jacobs Solutions (NYSE:J – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.
Earnings and Valuation
This table compares RCM Technologies and Jacobs Solutions”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RCM Technologies | $317.97 million | 0.64 | $16.33 million | $2.12 | 13.53 |
| Jacobs Solutions | $12.03 billion | 1.45 | $289.34 million | $2.82 | 52.32 |
Volatility and Risk
RCM Technologies has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Jacobs Solutions has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
Profitability
This table compares RCM Technologies and Jacobs Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RCM Technologies | 5.03% | 37.76% | 11.95% |
| Jacobs Solutions | 2.40% | 23.96% | 7.02% |
Analyst Recommendations
This is a summary of current ratings and price targets for RCM Technologies and Jacobs Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RCM Technologies | 0 | 2 | 1 | 0 | 2.33 |
| Jacobs Solutions | 0 | 6 | 6 | 0 | 2.50 |
RCM Technologies presently has a consensus target price of $36.00, indicating a potential upside of 25.48%. Jacobs Solutions has a consensus target price of $153.70, indicating a potential upside of 4.17%. Given RCM Technologies’ higher probable upside, equities research analysts plainly believe RCM Technologies is more favorable than Jacobs Solutions.
Insider and Institutional Ownership
43.2% of RCM Technologies shares are owned by institutional investors. Comparatively, 85.7% of Jacobs Solutions shares are owned by institutional investors. 28.0% of RCM Technologies shares are owned by company insiders. Comparatively, 0.5% of Jacobs Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Jacobs Solutions beats RCM Technologies on 9 of the 14 factors compared between the two stocks.
About RCM Technologies
RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Europe. It operates through three segments: Engineering, Specialty Health Care, and Life Sciences 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, international recruitment, and placement services in the fields of allied and therapy staffing, correctional healthcare staffing, health information management, nursing services, physician and advanced practice, school staffing and recruitment, and telepractice. The Life Sciences and Information Technology segment offers enterprise business solutions, application services, IT infrastructure solutions, life sciences solutions, and other vertical market specific solutions; and data solutions, digitization, recruiting process outsourcing, human capital management solutions, workforce management, and consulting services. 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 based in Pennsauken, New Jersey.
About Jacobs Solutions
Jacobs Solutions Inc. provides consulting, technical, engineering, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. It operates through Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting segments. The company offers cyber, data analytics, systems and software application integration and consulting, enterprise level and mission IT, design, nuclear, and enterprise level operations and maintenance services; software development, testing, mission integration, program management, research, development, test, evaluation services, training, and environmental remediation services; and other technical consulting solutions, as well as construction and construction management services. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport industries. The company was founded in 1947 and is headquartered in Dallas, Texas.
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