Analyzing Richtech Robotics (NASDAQ:RR) & MMTec (NASDAQ:MTC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Richtech Robotics	-417.41%	-10.68%	-10.47%
MMTec	N/A	N/A	N/A

Risk and Volatility

Richtech Robotics has a beta of -3.63, meaning that its share price is 463% less volatile than the S&P 500. Comparatively, MMTec has a beta of -0.68, meaning that its share price is 168% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Richtech Robotics and MMTec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richtech Robotics	1	0	2	0	2.33
MMTec	1	0	0	0	1.00

Richtech Robotics currently has a consensus price target of $4.50, suggesting a potential upside of 80.72%. Given Richtech Robotics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Richtech Robotics is more favorable than MMTec.

Valuation & Earnings

This table compares Richtech Robotics and MMTec”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richtech Robotics	$5.05 million	106.06	-$15.75 million	($0.14)	-17.79
MMTec	$1.87 million	57.65	-$91.17 million	N/A	N/A

Richtech Robotics has higher revenue and earnings than MMTec.

Institutional & Insider Ownership

0.0% of Richtech Robotics shares are held by institutional investors. Comparatively, 0.3% of MMTec shares are held by institutional investors. 19.8% of Richtech Robotics shares are held by insiders. Comparatively, 12.8% of MMTec 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.

Summary

Richtech Robotics beats MMTec on 7 of the 12 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 MMTec

MMTec, Inc., together with its subsidiaries, develops and deploys platforms that enable financial institutions to engage in securities market transactions and settlements worldwide. The company operates in two segments, Gujia and MM Global. It offers Internet-based securities solutions comprising Securities Dealers Trading System, which supports securities registration and clearing, account management, risk management, trading and execution, and third party access middleware; Private Fund Investment Management System that supports multi-account management, fund valuation, risk management, quantitative trading access, liquidation, and requisition management; and Mobile Transaction Individual Client System and PC Client System for Apple IOS, Android, PC, and Web applications. The company enables its customers to white label its trading interface, as well as select modular functionalities. It serves hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms. MMTec, Inc. was incorporated in 2018 and is headquartered in Sheung Wan, Hong Kong.