Conduent (NASDAQ:CNDT – Get Free Report) and RCM Technologies (NASDAQ:RCMT – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Insider and Institutional Ownership
77.3% of Conduent shares are held by institutional investors. Comparatively, 43.2% of RCM Technologies shares are held by institutional investors. 1.9% of Conduent shares are held by company insiders. Comparatively, 28.0% of RCM Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Conduent and RCM Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Conduent | -5.04% | -7.08% | -2.04% |
| RCM Technologies | 5.03% | 37.76% | 11.95% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Conduent | $3.04 billion | 0.08 | -$170.00 million | ($1.02) | -1.54 |
| RCM Technologies | $317.97 million | 0.63 | $16.33 million | $2.12 | 13.34 |
RCM Technologies has lower revenue, but higher earnings 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.
Analyst Ratings
This is a summary of recent recommendations and price targets for Conduent and RCM Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Conduent | 1 | 0 | 0 | 3 | 3.25 |
| RCM Technologies | 0 | 2 | 1 | 0 | 2.33 |
RCM Technologies has a consensus target price of $36.00, suggesting a potential upside of 27.25%. Given RCM Technologies’ higher probable upside, analysts clearly believe RCM Technologies is more favorable than Conduent.
Volatility & Risk
Conduent has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, RCM Technologies has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
Summary
RCM Technologies beats Conduent on 10 of the 15 factors compared between the two stocks.
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.
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.
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