Jacobs Solutions (NYSE:J) versus RCM Technologies (NASDAQ:RCMT) Head-To-Head Analysis

Jacobs Solutions (NYSE:J) and RCM Technologies (NASDAQ:RCMT) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Jacobs Solutions and RCM Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jacobs Solutions	0	6	6	0	2.50
RCM Technologies	0	2	1	0	2.33

Jacobs Solutions currently has a consensus price target of $153.70, suggesting a potential upside of 4.17%. RCM Technologies has a consensus price target of $36.00, suggesting a potential upside of 25.48%. Given RCM Technologies’ higher possible upside, analysts clearly believe RCM Technologies is more favorable than Jacobs Solutions.

Profitability

This table compares Jacobs Solutions and RCM Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jacobs Solutions	2.40%	23.96%	7.02%
RCM Technologies	5.03%	37.76%	11.95%

Valuation and Earnings

This table compares Jacobs Solutions and RCM Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jacobs Solutions	$12.03 billion	1.45	$289.34 million	$2.82	52.32
RCM Technologies	$317.97 million	0.64	$16.33 million	$2.12	13.53

Jacobs Solutions has higher revenue and earnings than RCM Technologies. RCM Technologies is trading at a lower price-to-earnings ratio than Jacobs Solutions, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

85.7% of Jacobs Solutions shares are owned by institutional investors. Comparatively, 43.2% of RCM Technologies shares are owned by institutional investors. 0.5% of Jacobs Solutions shares are owned by insiders. Comparatively, 28.0% of RCM Technologies shares are owned 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.

Volatility and Risk

Jacobs Solutions has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, RCM Technologies has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Summary

Jacobs Solutions beats RCM Technologies on 9 of the 14 factors compared between the two stocks.

About Jacobs Solutions

Jacobs Solutions Inc. provides consulting, technical, engineering, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. It operates through Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting segments. The company offers cyber, data analytics, systems and software application integration and consulting, enterprise level and mission IT, design, nuclear, and enterprise level operations and maintenance services; software development, testing, mission integration, program management, research, development, test, evaluation services, training, and environmental remediation services; and other technical consulting solutions, as well as construction and construction management services. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport industries. The company was founded in 1947 and is headquartered in Dallas, Texas.

About RCM Technologies

RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Europe. It operates through three segments: Engineering, Specialty Health Care, and Life Sciences and Information Technology. The Engineering segment offers a range of engineering services, including project management 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 segment provides long-term and short-term staffing, executive search, international recruitment, and placement services in the fields of allied and therapy staffing, correctional healthcare staffing, health information management, nursing services, physician and advanced practice, school staffing and recruitment, and telepractice. The Life Sciences and Information Technology segment offers enterprise business solutions, application services, IT infrastructure solutions, life sciences solutions, and other vertical market specific solutions; and data solutions, digitization, recruiting process outsourcing, human capital management solutions, workforce management, and consulting services. The company serves aerospace and defense, energy, financial services, health care, life sciences, manufacturing and distribution, and technology industries, as well as educational institutions and the public sector. RCM Technologies, Inc. was founded in 1971 and is based in Pennsauken, New Jersey.