Barrett Business Services (NASDAQ:BBSI) and R C M Technologies (NASDAQ:RCMT) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Valuation and Earnings
This table compares Barrett Business Services and R C M Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Barrett Business Services||$920.43 million||0.48||$25.17 million||$3.33||17.84|
|R C M Technologies||$186.74 million||0.26||$2.01 million||N/A||N/A|
Institutional and Insider Ownership
81.0% of Barrett Business Services shares are owned by institutional investors. Comparatively, 28.7% of R C M Technologies shares are owned by institutional investors. 6.6% of Barrett Business Services shares are owned by insiders. Comparatively, 12.2% of R C M Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Barrett Business Services has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, R C M Technologies has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
Barrett Business Services pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. R C M Technologies does not pay a dividend. Barrett Business Services pays out 30.0% of its earnings in the form of a dividend. Barrett Business Services has raised its dividend for 9 consecutive years.
This is a summary of current ratings for Barrett Business Services and R C M Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Barrett Business Services||0||0||2||0||3.00|
|R C M Technologies||0||0||0||0||N/A|
Barrett Business Services presently has a consensus price target of $97.50, indicating a potential upside of 64.14%. Given Barrett Business Services’ higher probable upside, equities research analysts plainly believe Barrett Business Services is more favorable than R C M Technologies.
This table compares Barrett Business Services and R C M Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Barrett Business Services||3.34%||36.31%||4.49%|
|R C M Technologies||1.21%||29.57%||9.39%|
Barrett Business Services beats R C M Technologies on 12 of the 15 factors compared between the two stocks.
Barrett Business Services Company Profile
Barrett Business Services, Inc. provides business management solutions for small and medium-sized companies in the United States. The company has management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. It offers professional employer services, under which it enters into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, payroll taxes, workers' compensation coverage, and certain other administration functions for the client's existing workforce. The company also provides staffing and recruiting services, such as on-demand or short-term staffing assignments, contract staffing, direct placement, long-term or indefinite-term on-site management. It serves electronics manufacturers, various light-manufacturing industries, agriculture-based companies, transportation and shipping enterprises, food processors, telecommunications companies, public utilities, general contractors in various construction-related fields, and professional services firms. Barrett Business Services, Inc. was founded in 1965 and is headquartered in Vancouver, Washington.
R C M Technologies Company Profile
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.
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