Financial Analysis: YY Group (NASDAQ:YYGH) & RCM Technologies (NASDAQ:RCMT)

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

Valuation and Earnings

This table compares YY Group and RCM Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YY Group	$31.77 million	1.97	$850,000.00	N/A	N/A
RCM Technologies	$263.24 million	0.66	$16.83 million	$2.06	11.04

RCM Technologies has higher revenue and earnings than YY Group.

Institutional & Insider Ownership

43.2% of RCM Technologies shares are held by institutional investors. 32.3% of RCM Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares YY Group and RCM Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YY Group	N/A	N/A	N/A
RCM Technologies	6.19%	67.39%	15.37%

Analyst Ratings

This is a breakdown of current recommendations for YY Group and RCM Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YY Group	0	0	0	0	N/A
RCM Technologies	0	0	1	0	3.00

RCM Technologies has a consensus target price of $33.00, indicating a potential upside of 45.05%. Given RCM Technologies’ higher probable upside, analysts plainly believe RCM Technologies is more favorable than YY Group.

Summary

RCM Technologies beats YY Group on 9 of the 10 factors compared between the two stocks.

About YY Group

YY Group Holding Limited, a data and technology driven company, provides manpower outsourcing and cleaning services in Singapore and Malaysia. Its cleaning services include commercial cleaning for offices and schools; hospitality cleaning for hotels and shopping centers; industrial cleaning, facade cleaning, disinfection, and stewarding services for meetings, incentives, conferences, and exhibitions, as well as banquets; and pest control services. The company also offers cleaning robots and machines to enhance cleaning performance by deploying them at designated premises. In addition, it provides YY Smart iClean App, which is a smart toilet central management platform. Further, the company offers manpower contracting services; employment agencies; general cleaning services; manpower outsourcing with information technology solution; management consulting; and employment placement and recruitment services. YY Group Holding Limited was founded in 2010 and is headquartered in Singapore.

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.