Analyzing SeqLL (NASDAQ:SQL) and RCM Technologies (NASDAQ:RCMT)

SeqLL (NASDAQ:SQL) and RCM Technologies (NASDAQ:RCMT) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

1.8% of SeqLL shares are held by institutional investors. Comparatively, 31.4% of RCM Technologies shares are held by institutional investors. 22.3% of SeqLL shares are held by insiders. Comparatively, 23.6% of RCM Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares SeqLL and RCM Technologies’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SeqLL	$80,000.00	3,106.99	-$4.09 million	($0.41)	-43.66
RCM Technologies	$262.53 million	0.63	$20.89 million	$1.69	12.21

RCM Technologies has higher revenue and earnings than SeqLL. SeqLL is trading at a lower price-to-earnings ratio than RCM Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

SeqLL has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, RCM Technologies has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for SeqLL and RCM Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SeqLL	0	0	0	0	N/A
RCM Technologies	0	0	1	0	3.00

RCM Technologies has a consensus price target of $22.00, suggesting a potential upside of 6.64%. Given RCM Technologies’ higher probable upside, analysts plainly believe RCM Technologies is more favorable than SeqLL.

Profitability

This table compares SeqLL and RCM Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SeqLL	N/A	-124.09%	-64.18%
RCM Technologies	6.16%	53.97%	17.22%

Summary

RCM Technologies beats SeqLL on 11 of the 13 factors compared between the two stocks.

About SeqLL

SeqLL Inc. operates as a life sciences instrumentation and research services company worldwide. It focus on development of scientific assets and novel intellectual property across multiple omics fields. The company's True Single Molecule Sequencing technology (tSMS) platform offers a single molecule solution for DNA and RNA sequencing through detection of nucleic acids to researchers for analyzing many billions of single molecules in a single experiment and generate accurate and reproducible data. It provide solutions for various applications, such as biomarker discovery and diagnostic assay developments including laboratories associated with universities, scientific research centers, government institutions, and biotechnology and pharmaceutical companies. In addition, the company has research and development agreement with U.S. Department of Justice's Federal Bureau of Investigation to evaluate and determine the forensic capabilities of direct RNA sequencing using tSMS platform; and research collaboration with True Bearing Diagnostics, Inc. performing tSMS on whole-blood RNA to identify transcripts associated with coronary artery disease. Further, it has collaboration agreement with The Bernstein Laboratory to address fundamental questions in chromatin biology and epigenetic regulation; The Ting Laboratory; The Jackson Laboratory for Genomic Medicine assisting in the development of new methods for chromatin interaction analysis in single nuclei, with single-molecule resolution; Weizmann Institute of Science for developed and applied innovative single-molecule technologies; and Tetracore, Inc. to provide with tSMS systems and onsite support. The company was founded in 2013 and is headquartered in Billerica, Massachusetts.

About RCM Technologies

RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia. 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, and placement services in the fields of allied and therapy staffing, correctional healthcare staffing, health information management, nursing services, physician and advanced practice, school services, and telepractice. The Life Sciences and Information Technology segment offers enterprise business solutions, application services, infrastructure solutions, competitive advantage, life sciences solutions, and other vertical market specific solutions. 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.