Financial Comparison: Resources Connection (NASDAQ:RGP) and Pagegroup (OTCMKTS:MPGPF)

Pagegroup (OTCMKTS:MPGPF) and Resources Connection (NASDAQ:RGP) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Volatility and Risk

Pagegroup has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Resources Connection has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Valuation & Earnings

This table compares Pagegroup and Resources Connection”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pagegroup	$2.11 billion	0.35	$11.89 million	N/A	N/A
Resources Connection	$452.01 million	0.32	-$40.60 million	($1.20)	-3.50

Pagegroup has higher revenue and earnings than Resources Connection.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pagegroup	N/A	N/A	N/A
Resources Connection	-8.98%	-4.63%	-3.16%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pagegroup and Resources Connection, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagegroup	2	3	0	0	1.60
Resources Connection	1	1	2	0	2.25

Resources Connection has a consensus target price of $7.00, indicating a potential upside of 66.47%. Given Resources Connection’s stronger consensus rating and higher probable upside, analysts plainly believe Resources Connection is more favorable than Pagegroup.

Institutional and Insider Ownership

93.2% of Resources Connection shares are owned by institutional investors. 7.9% of Resources Connection 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.

Summary

Pagegroup beats Resources Connection on 7 of the 12 factors compared between the two stocks.

About Pagegroup

PageGroup plc, together with its subsidiaries, provides recruitment consultancy and other ancillary services in the United Kingdom, rest of Europe, the Middle East, Africa, the Asia Pacific, and the Americas. It offers executive search services, such as search, selection, and talent management solutions for organizations on a permanent and interim basis under the Page Executive brand; and recruitment services for qualified professional and management level on permanent, temporary, and contract or interim basis under the Michael Page brand. The company also provides recruitment services to organizations requiring permanent employees, temporary, or contract staff at technical and administrative support, professional clerical, and junior management levels under the Page Personnel brand; and flexible recruitment outsourcing services under the Page Outsourcing brand. In addition, it is involved in the provision of IT consultancy services. The company was formerly known as Michael Page International plc and changed its name to PageGroup plc in June 2016. PageGroup plc was founded in 1976 and is headquartered in Addlestone, the United Kingdom.

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.