Contrasting RCM Technologies (NASDAQ:RCMT) & TCTM Kids IT Education (NASDAQ:VSA)

RCM Technologies (NASDAQ:RCMT) and TCTM Kids IT Education (NASDAQ:VSA) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Insider & Institutional Ownership

43.2% of RCM Technologies shares are owned by institutional investors. Comparatively, 49.8% of TCTM Kids IT Education shares are owned by institutional investors. 26.4% of RCM Technologies shares are owned by insiders. Comparatively, 32.9% of TCTM Kids IT Education shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for RCM Technologies and TCTM Kids IT Education, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RCM Technologies	0	1	1	1	3.00
TCTM Kids IT Education	1	0	0	0	1.00

RCM Technologies presently has a consensus target price of $33.50, indicating a potential upside of 42.25%. Given RCM Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe RCM Technologies is more favorable than TCTM Kids IT Education.

Earnings & Valuation

This table compares RCM Technologies and TCTM Kids IT Education”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RCM Technologies	$278.38 million	0.63	$13.33 million	$1.76	13.38
TCTM Kids IT Education	$160.41 million	0.18	-$80.36 million	N/A	N/A

RCM Technologies has higher revenue and earnings than TCTM Kids IT Education.

Profitability

This table compares RCM Technologies and TCTM Kids IT Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RCM Technologies	4.53%	39.98%	10.57%
TCTM Kids IT Education	N/A	N/A	N/A

Risk and Volatility

RCM Technologies has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, TCTM Kids IT Education has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Summary

RCM Technologies beats TCTM Kids IT Education on 10 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 TCTM Kids IT Education

Tarena International, Inc., through its subsidiaries, provides professional education services through full-time and part-time classes under the Tarena brand in the People’s Republic of China. It operates through two segments, Adult Professional Education and Childhood & Adolescent Quality Education Services. The company offers education courses in 7 information technology (IT) subjects, such as Java, software testing, Linux and network engineering, Big Data, Web front-end development, Python, and network engineer courses; and 3 non-IT subjects, including digital art, online sales and marketing, and visual effects-VFX, as well as live distance instruction, classroom-based tutoring, and online learning modules. It also provides 9 childhood and adolescent quality education programs, including robotics programming, graphical intelligent programming, NOI informatics Olympiad, Python artificial intelligence, high level hardware programming for secondary school, soft and hard programming enlightenment, creative programming starter, and SPIKE starter and advanced under the TongchengTongmei brand. In addition, the company offers online learning platform for education courses and job placement training courses. As of December 31, 2021, it had a network of 100 directly managed learning centers in 44 cities; and 238 TongchengTongmei standalone learning centers in 54 cities. The company was founded in 2002 and is headquartered in Beijing, the People’s Republic of China.