Contrasting SITO Mobile (OTCMKTS:SITOQ) & Resources Connection (NASDAQ:RGP)

Resources Connection (NASDAQ:RGP – Get Rating) and SITO Mobile (OTCMKTS:SITOQ – Get Rating) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Resources Connection and SITO Mobile, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resources Connection	1	2	0	0	1.67
SITO Mobile	0	0	0	0	N/A

Resources Connection currently has a consensus target price of $16.50, suggesting a potential upside of 5.97%. Given Resources Connection’s higher possible upside, equities research analysts clearly believe Resources Connection is more favorable than SITO Mobile.

Profitability

This table compares Resources Connection and SITO Mobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resources Connection	7.81%	17.01%	12.18%
SITO Mobile	N/A	N/A	N/A

Volatility and Risk

Resources Connection has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, SITO Mobile has a beta of -0.53, meaning that its stock price is 153% less volatile than the S&P 500.

Institutional and Insider Ownership

84.4% of Resources Connection shares are held by institutional investors. 8.0% of Resources Connection shares are held by company insiders. Comparatively, 2.2% of SITO Mobile shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Resources Connection and SITO Mobile’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resources Connection	$805.02 million	0.65	$67.18 million	$1.86	8.37
SITO Mobile	N/A	N/A	N/A	N/A	N/A

Resources Connection has higher revenue and earnings than SITO Mobile.

Summary

Resources Connection beats SITO Mobile on 8 of the 8 factors compared between the two stocks.

About Resources Connection

(Get Rating)

Resources Connection Inc. engages in the provision of business consulting services. It offers consulting and business initiative support services to its global client base in the areas of accounting, finance, corporate governance risk and compliance management, corporate advisory strategic communications and restructuring, information management, human capital, supply chain management, healthcare solutions, and legal and regulatory. The company was founded by Donald Brian Murray in June 1996 and is headquartered in Irvine, CA.

About SITO Mobile

(Get Rating)

SITO Mobile Ltd. engages in the provision of advertising solutions to businesses, advertisers, and brands. It offers Location Based Advertising, which displays advertisements and videos on behalf of advertisers, and Mobile Messaging, a platform for building and controlling tailored programs including messaging and customer incentive programs. The company was founded by Anthony G. Macaluso on May 31, 2000 and is headquartered in Jersey City, NJ.