Comparing Fathom (NASDAQ:FTHM) and Richtech Robotics (NASDAQ:RR)

Richtech Robotics (NASDAQ:RR) and Fathom (NASDAQ:FTHM) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Richtech Robotics and Fathom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richtech Robotics	-366.21%	-23.85%	-23.37%
Fathom	-4.70%	-45.99%	-24.74%

Volatility & Risk

Richtech Robotics has a beta of -4.13, indicating that its share price is 513% less volatile than the S&P 500. Comparatively, Fathom has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Richtech Robotics shares are held by institutional investors. Comparatively, 55.5% of Fathom shares are held by institutional investors. 19.8% of Richtech Robotics shares are held by company insiders. Comparatively, 16.4% of Fathom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Richtech Robotics and Fathom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richtech Robotics	1	0	2	0	2.33
Fathom	1	0	1	0	2.00

Richtech Robotics presently has a consensus target price of $4.50, indicating a potential upside of 50.00%. Fathom has a consensus target price of $2.50, indicating a potential upside of 113.68%. Given Fathom’s higher probable upside, analysts plainly believe Fathom is more favorable than Richtech Robotics.

Earnings & Valuation

This table compares Richtech Robotics and Fathom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richtech Robotics	$4.24 million	106.05	-$8.14 million	($0.17)	-17.65
Fathom	$421.61 million	0.09	-$21.58 million	($0.81)	-1.44

Richtech Robotics has higher earnings, but lower revenue than Fathom. Richtech Robotics is trading at a lower price-to-earnings ratio than Fathom, indicating that it is currently the more affordable of the two stocks.

Summary

Richtech Robotics beats Fathom on 8 of the 14 factors compared between the two stocks.

About Richtech Robotics

Richtech Robotics Inc. develops, manufactures, deploys, and sells robotic solutions for automation in the service industry. The company offers indoor transport and delivery, sanitation, and food and beverage automation solutions, such as ADAM and ARM worker robots; delivery robots, including Matradee, Matradee X, Matradee L, Richie, and Robbie; and cleaning robots comprising DUST-E SX, and DUST-E MX, as well as accessories, such as bus tubs, cup holders, magnetic tray cases, smartwatches, table location systems, and tray covers. It primarily serves restaurants, hotels, casinos, senior living centers, factories, and retail centers, as well as hospitals, and movie theaters. The company was formerly known as Richtech Creative Displays LLC and changed its name to Richtech Robotics Inc. on June 22, 2022. Richtech Robotics Inc. was incorporated in 2016 and is headquartered in Las Vegas, Nevada.

About Fathom

Fathom Holdings Inc. provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers. It offers access to various properties for sale or lease through its FathomRealty.com website to buyers, sellers, landlords, and tenants; insurance agency services; and title services. In addition, the company provides intelliAgent, a real estate technology platform that offers a suite of brokerage and agent level tools, technology, business processes, business intelligence and reporting, and training; transaction, personnel, customer relationship, and accounting management for agent transactions; and reporting, social media marketing, and other marketing and marketing repository services, as well as marketplace for add-on services and third-party technology. Its brands include Fathom Realty, Dagley Insurance, Encompass Lending, intelliAgent, LiveBy, Real Results, Verus Title, and Cornerstone. The company was founded in 2010 and is headquartered in Cary, North Carolina.