Analyzing Resources Connection (RECN) and Its Competitors
Resources Connection (NASDAQ: RECN) is one of 98 publicly-traded companies in the “Business Support Services” industry, but how does it weigh in compared to its competitors? We will compare Resources Connection to similar businesses based on the strength of its risk, valuation, dividends, profitability, analyst recommendations, institutional ownership and earnings.
This is a breakdown of recent recommendations for Resources Connection and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Resources Connection Competitors||746||2108||2698||84||2.38|
Resources Connection currently has a consensus price target of $13.50, suggesting a potential downside of 2.88%. As a group, “Business Support Services” companies have a potential downside of 3.53%. Given Resources Connection’s higher probable upside, equities research analysts plainly believe Resources Connection is more favorable than its competitors.
Volatility & Risk
Resources Connection has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Resources Connection’s competitors have a beta of 1.12, suggesting that their average share price is 12% more volatile than the S&P 500.
Valuation and Earnings
This table compares Resources Connection and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Resources Connection||$583.41 million||$41.75 million||25.27|
|Resources Connection Competitors||$1.12 billion||$179.80 million||21.54|
Resources Connection’s competitors have higher revenue and earnings than Resources Connection. Resources Connection is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Insider and Institutional Ownership
82.1% of Resources Connection shares are owned by institutional investors. Comparatively, 62.9% of shares of all “Business Support Services” companies are owned by institutional investors. 11.8% of Resources Connection shares are owned by company insiders. Comparatively, 12.1% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Resources Connection pays an annual dividend of $0.48 per share and has a dividend yield of 3.5%. Resources Connection pays out 87.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Business Support Services” companies pay a dividend yield of 1.1% and pay out 26.9% of their earnings in the form of a dividend.
This table compares Resources Connection and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Resources Connection Competitors||-126.75%||-182.35%||-5.59%|
Resources Connection beats its competitors on 8 of the 15 factors compared.
Resources Connection Company Profile
Resources Connection, Inc. is a multinational consulting firm. The Company’s operating entities primarily provide services under the name Resources Global Professionals (RGP). The Company provides consulting and business initiative support services to its global client base in the areas of accounting; finance; corporate governance, risk and compliance (GRC) management; corporate advisory, strategic communications and restructuring; information management; human capital; supply chain management, and legal and regulatory. The Company provides its services and solutions to a client base in a range of industries. Its finance and accounting services encompass accounting operations, financial reporting, internal controls, financial analyses and business transactions. It offers a range of technology solutions, which include enterprise resource planning systems; strategic front-of-the-house systems; human resources (HR) information systems, and supply chain management systems, among others.
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