Analyzing Getty Images (NYSE:GETY) and Resources Connection (NASDAQ:RGP)

Getty Images (NYSE:GETY) and Resources Connection (NASDAQ:RGP) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Getty Images and Resources Connection, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Images	0	1	3	0	2.75
Resources Connection	1	1	1	0	2.00

Getty Images presently has a consensus target price of $5.55, indicating a potential upside of 60.87%. Resources Connection has a consensus target price of $13.00, indicating a potential upside of 47.73%. Given Getty Images’ stronger consensus rating and higher probable upside, equities analysts clearly believe Getty Images is more favorable than Resources Connection.

Institutional & Insider Ownership

45.8% of Getty Images shares are held by institutional investors. Comparatively, 93.2% of Resources Connection shares are held by institutional investors. 12.3% of Getty Images shares are held by insiders. Comparatively, 3.4% of Resources Connection shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Getty Images has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500. Comparatively, Resources Connection has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Earnings and Valuation

This table compares Getty Images and Resources Connection”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Images	$916.55 million	1.54	$19.34 million	$0.08	43.13
Resources Connection	$632.80 million	0.47	$21.03 million	$0.36	24.44

Resources Connection has lower revenue, but higher earnings than Getty Images. Resources Connection is trading at a lower price-to-earnings ratio than Getty Images, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Getty Images	4.19%	9.36%	2.44%
Resources Connection	2.04%	3.69%	2.94%

Summary

Getty Images beats Resources Connection on 10 of the 14 factors compared between the two stocks.

About Getty Images

Getty Images Holdings, Inc. offers creative and editorial visual content solutions in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Its products include Getty Images that offers creative and editorial content including stills, music and video which focuses on corporate, agency, and media customers; iStock.com, an e-commerce offering where customers have access to creative stills and video; Unsplash.com, a platform offering free stock photo downloads and paid subscriptions targeted to the high-growth prosumer and semi-professional creator segments; and Unsplash+ that provides access to unique model released content with expanded legal protections. In addition, it maintains privately-owned photographic archives covering news, sport, and entertainment, as well as variety of subjects, including lifestyle, business, science, health, wellness, beauty, sports, transportation, and travel. Further, the company provides music licensing, and digital asset management and distribution services. It serves media outlets, advertising agencies and corporations, individual creators, and prosumers. The company was formerly known as Getty Images, Inc. Getty Images Holdings, Inc. was founded in 1995 and is headquartered in Seattle, Washington.

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.