Resources Connection (NASDAQ:RGP – Get Free Report) and Spindle (OTCMKTS:SPDL – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Profitability
This table compares Resources Connection and Spindle’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Resources Connection | -10.55% | 3.75% | 2.98% |
Spindle | N/A | N/A | N/A |
Valuation & Earnings
This table compares Resources Connection and Spindle”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Resources Connection | $582.06 million | 0.49 | $21.03 million | ($1.86) | -4.61 |
Spindle | N/A | N/A | N/A | N/A | N/A |
Institutional & Insider Ownership
93.2% of Resources Connection shares are owned by institutional investors. 3.4% of Resources Connection shares are owned by insiders. Comparatively, 14.6% of Spindle shares are owned 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.
Analyst Ratings
This is a summary of recent recommendations for Resources Connection and Spindle, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Resources Connection | 1 | 1 | 1 | 0 | 2.00 |
Spindle | 0 | 0 | 0 | 0 | 0.00 |
Resources Connection presently has a consensus price target of $13.00, indicating a potential upside of 51.52%. Given Resources Connection’s stronger consensus rating and higher probable upside, equities analysts clearly believe Resources Connection is more favorable than Spindle.
Summary
Resources Connection beats Spindle on 7 of the 9 factors compared between the two stocks.
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.
About Spindle
Spindle, Inc. provides payment-processing services to merchants using its Catalyst Gateway. It also acts as an agent, independent contractor, or referral partner to broker merchants that it secures to other merchant processors for ongoing fees based on processing volume. The company serves small and medium-sized businesses. The company is based in Marco Island, Florida.
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