Comparing RCM Technologies (NASDAQ:RCMT) & Conduent (NASDAQ:CNDT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RCM Technologies	5.03%	37.76%	11.95%
Conduent	-5.04%	-7.08%	-2.04%

Volatility and Risk

RCM Technologies has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Conduent has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RCM Technologies	$317.97 million	0.63	$16.33 million	$2.12	13.34
Conduent	$3.04 billion	0.08	-$170.00 million	($1.02)	-1.54

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

Insider & Institutional Ownership

43.2% of RCM Technologies shares are held by institutional investors. Comparatively, 77.3% of Conduent shares are held by institutional investors. 28.0% of RCM Technologies shares are held by insiders. Comparatively, 1.9% of Conduent shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for RCM Technologies and Conduent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RCM Technologies	0	2	1	0	2.33
Conduent	1	0	0	3	3.25

RCM Technologies currently has a consensus target price of $36.00, indicating a potential upside of 27.25%. Given RCM Technologies’ higher possible upside, equities analysts clearly believe RCM Technologies is more favorable than Conduent.

Summary

RCM Technologies beats Conduent on 10 of the 15 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 Conduent

Conduent Incorporated provides digital business solutions and services for the commercial, government, and transportation spectrum in the United States, Europe, and internationally. It operates through three segments: Commercial, Government Services, and Transportation. The Commercial segment offers business process services and customized solutions to clients in various industries; and customer experience management, business operations, healthcare claims and administration, and human capital solutions. The Government segment provides government-centric business process services to the United States federal, state, local, and foreign governments for public assistance, program administration, transaction processing, and payment services; and digital payments, child support payments, government healthcare, and eligibility and enrollment solutions. The Transportation segment offers systems, support, and revenue-generating solutions to government transportation agency clients; and public safety, mobility, and digital payment solutions. This segment also provides electronic tolling, urban congestion management, and mileage-based user solutions; transit solutions; citation and permit administration, parking enforcement, and curbside demand management solutions; and computer-aided dispatch/automatic vehicle location solutions. Conduent Incorporated was founded in 2016 and is headquartered in Florham Park, New Jersey.