Financial Analysis: CACI International (NYSE:CACI) versus RCM Technologies (NASDAQ:RCMT)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CACI International	$9.57 billion	1.49	$535.81 million	$24.36	26.27
RCM Technologies	$319.40 million	0.75	$16.33 million	$2.30	14.70

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CACI International and RCM Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CACI International	1	1	9	0	2.73
RCM Technologies	0	1	3	0	2.75

CACI International presently has a consensus target price of $727.70, suggesting a potential upside of 13.72%. RCM Technologies has a consensus target price of $45.00, suggesting a potential upside of 33.06%. Given RCM Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe RCM Technologies is more favorable than CACI International.

Volatility & Risk

CACI International has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, RCM Technologies has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CACI International	5.55%	15.56%	6.15%
RCM Technologies	5.13%	37.92%	12.83%

Insider & Institutional Ownership

86.4% of CACI International shares are held by institutional investors. Comparatively, 43.2% of RCM Technologies shares are held by institutional investors. 0.9% of CACI International shares are held by insiders. Comparatively, 28.0% of RCM Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

CACI International beats RCM Technologies on 9 of the 14 factors compared between the two stocks.

About CACI International

CACI International Inc, through its subsidiaries, engages in the provision of expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors. The company operates through two segments, Domestic Operations and International Operations. The Domestic Operations segment offers digital solutions by modernizing enterprise and agency-unique applications, enterprise infrastructure, and business processes; C4ISR solutions, including command, control, communications, and computer (C4), as well as intelligence, surveillance, and reconnaissance (ISR) technology and networks; and cyber solutions for cybersecurity, cyberspace, electronic warfare, and signals intelligence operations. This segment also provides space solutions, comprising intelligence fusion, data analytic, and decision support, as well as logistics solutions; engineering services, such as platform integration, modernization and sustainment, system engineering, naval architecture, training and simulation, and logistics engineering; design, implement, protect, and manage secure enterprise IT solutions for federal agencies; and mission support solutions, that include analytic services, as well as scenario-based instruction across the spectrum of intelligence processing, collection, and products. The International Operations segment provides a range of IT services, proprietary data, and software products to the commercial and government customers in the United Kingdom, continental Europe, and internationally. The company was founded in 1962 and is headquartered in Reston, Virginia.

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.