Maximus (NYSE:MMS) and RCM Technologies (NASDAQ:RCMT) Head to Head Comparison

RCM Technologies (NASDAQ:RCMT) and Maximus (NYSE:MMS) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for RCM Technologies and Maximus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RCM Technologies	0	1	3	0	2.75
Maximus	0	2	0	0	2.00

RCM Technologies presently has a consensus target price of $45.00, suggesting a potential upside of 20.00%. Given RCM Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe RCM Technologies is more favorable than Maximus.

Institutional & Insider Ownership

43.2% of RCM Technologies shares are owned by institutional investors. Comparatively, 97.2% of Maximus shares are owned by institutional investors. 28.0% of RCM Technologies shares are owned by company insiders. Comparatively, 1.8% of Maximus shares are owned by company 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.

Earnings & Valuation

This table compares RCM Technologies and Maximus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RCM Technologies	$333.62 million	0.80	$16.33 million	$2.30	16.30
Maximus	$5.43 billion	0.59	$319.03 million	$6.77	9.09

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RCM Technologies	5.13%	37.92%	12.83%
Maximus	7.07%	24.91%	10.08%

Volatility & Risk

RCM Technologies has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Maximus has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

RCM Technologies beats Maximus on 8 of the 14 factors compared between the two stocks.

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.

About Maximus

Maximus, Inc. operates as a provider of government services in the United States and internationally. It operates through three segments: U.S. Federal Services, U.S. Services, and Outside the U.S. The U.S. Services segment offers program eligibility support and enrollment; centralized multilingual customer contact centers, multichannel, and digital self-service options for enrollment; application assistance and independent health plan choice counseling; beneficiary outreach, education, eligibility, enrollment, and redeterminations; and person-centered independent disability, long-term sick, and other health assessments. This segment also provides employment services, such as eligibility support, case management, job-readiness preparation, job search and employer outreach, job retention and career advancement, and educational and training services; technology solutions; system implementation project management services; and specialized consulting services. The U.S. Federal Services segment offers Business process services, eligibility and enrollment, outreach, and other services for federal health and human services programs; clinical services; and technology solutions, including application development and modernization services, enterprise business solutions, advanced analytics and emerging technologies, cybersecurity services, and infrastructure and engineering solutions. The Outside the U.S. segment offers BPS solutions for international governments, including health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. Maximus, Inc. was founded in 1975 and is headquartered in McLean, Virginia.