Financial Comparison: Randstad (OTCMKTS:RANJY) & RCM Technologies (NASDAQ:RCMT)

Randstad (OTCMKTS:RANJY) and RCM Technologies (NASDAQ:RCMT) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

0.0% of Randstad shares are owned by institutional investors. Comparatively, 43.2% of RCM Technologies shares are owned by institutional investors. 26.4% of RCM Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Randstad	0.37%	8.78%	3.24%
RCM Technologies	4.53%	39.98%	10.57%

Risk & Volatility

Randstad has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, RCM Technologies has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Randstad and RCM Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	0	2	0	2	3.00
RCM Technologies	0	0	1	1	3.50

RCM Technologies has a consensus price target of $33.50, indicating a potential upside of 35.90%. Given RCM Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe RCM Technologies is more favorable than Randstad.

Earnings & Valuation

This table compares Randstad and RCM Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.11 billion	0.33	$133.10 million	$0.24	99.46
RCM Technologies	$278.38 million	0.66	$13.33 million	$1.76	14.01

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

Summary

RCM Technologies beats Randstad on 10 of the 15 factors compared between the two stocks.

About Randstad

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.

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.