R C M Technologies (RCMT) versus AMN Healthcare Services (AMN) Critical Review

R C M Technologies (NASDAQ:RCMT) and AMN Healthcare Services (NYSE:AMN) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Volatility and Risk

R C M Technologies has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, AMN Healthcare Services has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for R C M Technologies and AMN Healthcare Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
R C M Technologies 0 0 0 0 N/A
AMN Healthcare Services 0 2 7 0 2.78

AMN Healthcare Services has a consensus target price of $66.25, indicating a potential upside of 17.59%. Given AMN Healthcare Services’ higher probable upside, analysts clearly believe AMN Healthcare Services is more favorable than R C M Technologies.

Institutional and Insider Ownership

29.2% of R C M Technologies shares are held by institutional investors. 12.2% of R C M Technologies shares are held by company insiders. Comparatively, 2.2% of AMN Healthcare Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares R C M Technologies and AMN Healthcare Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
R C M Technologies $186.74 million 0.26 $2.01 million N/A N/A
AMN Healthcare Services $1.99 billion 1.33 $132.55 million $2.56 22.01

AMN Healthcare Services has higher revenue and earnings than R C M Technologies.

Profitability

This table compares R C M Technologies and AMN Healthcare Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
R C M Technologies 1.21% 29.57% 9.39%
AMN Healthcare Services 6.96% 25.32% 11.04%

Summary

AMN Healthcare Services beats R C M Technologies on 9 of the 12 factors compared between the two stocks.

About R C M Technologies

RCM Technologies, Inc. provides business and technology solutions to the commercial and government sectors in the United States, Canada, the Puerto Rico, and Serbia. The company operates through three segments: Engineering, Specialty Health Care, and Information Technology. The Engineering segment provides engineering and design, engineering analysis, engineer-procure-construct, configuration management, hardware/software validation and verification, quality assurance, technical writing and publications, manufacturing process planning and improvement, and 3D/BIM integrated design. The Specialty Health Care Services segment provides long-term and short-term staffing, executive search, and placement services in the fields of rehabilitation, including physical therapists, occupational therapists, and speech language pathologists; nursing; managed care; allied health care; health care management; medical office support; and non-medical caregivers or companions. This segment also offers in-patient, outpatient, sub-acute and acute care, multilingual speech pathology, rehabilitation, geriatric, pediatric, and adult day care services to hospitals, long-term care facilities, schools, sports medicine facilities, and private practices. The Information Technology segment offers enterprise business solutions, application services, infrastructure solutions, competitive advantage and productivity solutions, life sciences solutions, and other vertical market specific solutions. The company also serves aerospace/defense, educational institution, energy, financial services, health care, life sciences, manufacturing and distribution, and the public sector and technology industries. RCM Technologies, Inc. was founded in 1971 and is headquartered in Pennsauken, New Jersey.

About AMN Healthcare Services

AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to healthcare facilities across the nation. Its workforce solutions include managed services programs and recruitment process outsourcing. The company operates through the following segments: Nurse and Allied Healthcare Staffing, Locum Tenens Staffing and Physician Permanent Placement Services. The Nurse and Allied Healthcare Staffing segment provides hospital and other healthcare facilities with a range of clinical workforce solutions. The Locum Tenens Staffing segment offers managed service programs, vendor management systems solution and traditional temporary staffing. The Physician Permanent Placement Services segment provides physician permanent placement services. AMN Healthcare Services was founded on November 10, 1997 and is headquartered in San Diego, CA.

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