Maximus (NYSE:MMS – Get Free Report) and RCM Technologies (NASDAQ:RCMT – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Volatility and Risk
Maximus has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, RCM Technologies has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.
Valuation and Earnings
This table compares Maximus and RCM Technologies”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Maximus | $5.43 billion | 0.59 | $319.03 million | $6.77 | 9.09 |
| RCM Technologies | $333.62 million | 0.80 | $16.33 million | $2.30 | 16.30 |
Maximus has higher revenue and earnings than RCM Technologies. Maximus is trading at a lower price-to-earnings ratio than RCM Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Maximus and RCM Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Maximus | 0 | 2 | 0 | 0 | 2.00 |
| RCM Technologies | 0 | 1 | 3 | 0 | 2.75 |
RCM Technologies has a consensus price target of $45.00, suggesting a potential upside of 20.00%. Given RCM Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe RCM Technologies is more favorable than Maximus.
Profitability
This table compares Maximus and RCM Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Maximus | 7.07% | 24.91% | 10.08% |
| RCM Technologies | 5.13% | 37.92% | 12.83% |
Insider and Institutional Ownership
97.2% of Maximus shares are owned by institutional investors. Comparatively, 43.2% of RCM Technologies shares are owned by institutional investors. 1.8% of Maximus shares are owned by company insiders. Comparatively, 28.0% of RCM Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
RCM Technologies beats Maximus on 8 of the 14 factors compared between the two stocks.
About Maximus
Maximus, Inc. operates as a provider of government services in the United States and internationally. It operates through three segments: U.S. Federal Services, U.S. Services, and Outside the U.S. The U.S. Services segment offers program eligibility support and enrollment; centralized multilingual customer contact centers, multichannel, and digital self-service options for enrollment; application assistance and independent health plan choice counseling; beneficiary outreach, education, eligibility, enrollment, and redeterminations; and person-centered independent disability, long-term sick, and other health assessments. This segment also provides employment services, such as eligibility support, case management, job-readiness preparation, job search and employer outreach, job retention and career advancement, and educational and training services; technology solutions; system implementation project management services; and specialized consulting services. The U.S. Federal Services segment offers Business process services, eligibility and enrollment, outreach, and other services for federal health and human services programs; clinical services; and technology solutions, including application development and modernization services, enterprise business solutions, advanced analytics and emerging technologies, cybersecurity services, and infrastructure and engineering solutions. The Outside the U.S. segment offers BPS solutions for international governments, including health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. Maximus, Inc. was founded in 1975 and is headquartered in McLean, Virginia.
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.
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