Resources Connection (NASDAQ:RECN) and Prism Technologies Group (OTCMKTS:PRZM) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Insider & Institutional Ownership
81.9% of Resources Connection shares are owned by institutional investors. 10.5% of Resources Connection shares are owned by company insiders. Comparatively, 29.3% of Prism Technologies Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Resources Connection has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Prism Technologies Group has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.
Valuation & Earnings
This table compares Resources Connection and Prism Technologies Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Resources Connection||$729.00 million||0.65||$31.47 million||$1.03||14.42|
|Prism Technologies Group||N/A||N/A||-$12.78 million||N/A||N/A|
Resources Connection has higher revenue and earnings than Prism Technologies Group.
Resources Connection pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Prism Technologies Group does not pay a dividend. Resources Connection pays out 54.4% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Resources Connection and Prism Technologies Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Prism Technologies Group||0||0||0||0||N/A|
Resources Connection currently has a consensus price target of $16.00, suggesting a potential upside of 7.74%. Given Resources Connection’s higher probable upside, research analysts plainly believe Resources Connection is more favorable than Prism Technologies Group.
This table compares Resources Connection and Prism Technologies Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Prism Technologies Group||N/A||N/A||N/A|
Resources Connection beats Prism Technologies Group on 8 of the 11 factors compared between the two stocks.
Resources Connection Company Profile
Resources Connection, Inc. provides business consulting services under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers process transformation and optimization, financial reporting and analysis, technical and operational accounting, and merger and acquisition due diligence and integration services; new accounting standards implementation and remediation support services; and audit readiness, and preparation and response services. It also provides information management services comprising program and project management, business and technology integration, data strategy, and business performance management. In addition, the company offers corporate advisory, strategic and crisis communications, and restructuring services; and governance, risk, and compliance (GRC) management services that include governance, assessments, auditing and automation of programs managing regulatory compliance, enterprise risk management, internal audits, operational risk management, and data security and privacy services. Further, it provides strategy development, procurement and supplier management, logistics and materials management, supply chain planning and forecasting, and unique device identification compliance; and change management, organization development and effectiveness, employment engagement, compensation and incentive plan strategies and design, and optimization of human resources technology and operations. Additionally, the company offers legal and regulatory supporting services for commercial transactions, global compliance initiatives, law department operations, and law department business strategy and analytics. It also provides policyIQ, a cloud-based GRC software application. 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.
Prism Technologies Group Company Profile
Prism Technologies Group, Inc. licenses and enforces a portfolio of patents relating to its technologies. It owns a portfolio of approximately 50 issued patents in the areas of computer and network security, semiconductors, and medical technology. The company was formerly known as Internet Patents Corporation and changed its name to Prism Technologies Group, Inc. in September 2015. Prism Technologies Group, Inc. was founded in 1995 and is headquartered in Folsom, California.
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