RCM Technologies (NASDAQ:RCMT – Get Free Report) and Upwork (NASDAQ:UPWK – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Profitability
This table compares RCM Technologies and Upwork’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RCM Technologies | 5.13% | 37.92% | 12.83% |
| Upwork | 13.53% | 17.28% | 8.20% |
Risk & Volatility
RCM Technologies has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Upwork has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Institutional and Insider Ownership
43.2% of RCM Technologies shares are owned by institutional investors. Comparatively, 77.7% of Upwork shares are owned by institutional investors. 28.0% of RCM Technologies shares are owned by company insiders. Comparatively, 4.9% of Upwork shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares RCM Technologies and Upwork”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RCM Technologies | $319.40 million | 0.79 | $16.33 million | $2.30 | 15.34 |
| Upwork | $787.78 million | 1.63 | $115.43 million | $0.77 | 13.39 |
Upwork has higher revenue and earnings than RCM Technologies. Upwork 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 Recommendations
This is a breakdown of current ratings and recommmendations for RCM Technologies and Upwork, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RCM Technologies | 0 | 1 | 3 | 0 | 2.75 |
| Upwork | 1 | 9 | 3 | 0 | 2.15 |
RCM Technologies presently has a consensus target price of $45.00, indicating a potential upside of 27.50%. Upwork has a consensus target price of $13.55, indicating a potential upside of 31.40%. Given Upwork’s higher probable upside, analysts clearly believe Upwork is more favorable than RCM Technologies.
Summary
Upwork beats RCM Technologies on 7 of the 13 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 Upwork
Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Payroll and Upwork Enterprise, as well as managed and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.
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