Analyzing TuanChe (NASDAQ:TC) and Resources Connection (NASDAQ:RGP)

TuanChe (NASDAQ:TC) and Resources Connection (NASDAQ:RGP) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

8.9% of TuanChe shares are held by institutional investors. Comparatively, 93.2% of Resources Connection shares are held by institutional investors. 0.5% of TuanChe shares are held by insiders. Comparatively, 3.4% of Resources Connection 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.

Profitability

This table compares TuanChe and Resources Connection’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TuanChe	N/A	N/A	N/A
Resources Connection	-10.55%	3.75%	2.98%

Valuation and Earnings

This table compares TuanChe and Resources Connection”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TuanChe	$49.18 million	0.05	-$11.69 million	N/A	N/A
Resources Connection	$560.19 million	0.34	$21.03 million	($3.28)	-1.74

Resources Connection has higher revenue and earnings than TuanChe.

Analyst Ratings

This is a summary of recent recommendations and price targets for TuanChe and Resources Connection, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TuanChe	0	0	0	0	0.00
Resources Connection	1	0	1	0	2.00

Resources Connection has a consensus price target of $10.00, indicating a potential upside of 75.44%. Given Resources Connection’s stronger consensus rating and higher possible upside, analysts clearly believe Resources Connection is more favorable than TuanChe.

Risk and Volatility

TuanChe has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Resources Connection has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Summary

Resources Connection beats TuanChe on 11 of the 12 factors compared between the two stocks.

About TuanChe

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.

About Resources Connection

Resources Connection, Inc. provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance. It provides transformations services comprising finance transformation, digital transformation, supply chain management, cloud migration, and data design and analytics. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.