Comparing Resources Connection (NASDAQ:RGP) & RPS Group (OTCMKTS:RPSGF)

Resources Connection (NASDAQ:RGP) and RPS Group (OTCMKTS:RPSGF) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Resources Connection	7.01%	14.84%	11.16%
RPS Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Resources Connection and RPS Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resources Connection	$775.64 million	0.66	$54.36 million	$1.60	9.46
RPS Group	N/A	N/A	N/A	N/A	N/A

Resources Connection has higher revenue and earnings than RPS Group.

Institutional and Insider Ownership

84.0% of Resources Connection shares are held by institutional investors. 7.4% of Resources Connection shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Resources Connection and RPS Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resources Connection	1	2	0	0	1.67
RPS Group	0	1	0	0	2.00

Resources Connection presently has a consensus target price of $16.50, indicating a potential upside of 9.05%. Given Resources Connection’s higher possible upside, analysts plainly believe Resources Connection is more favorable than RPS Group.

Summary

Resources Connection beats RPS Group on 7 of the 8 factors compared between the two stocks.

About Resources Connection

Resources Connection, Inc. provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance. It provides transformations services comprising finance transformation, digital transformation, supply chain management, cloud migration, and data design and analytics. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

About RPS Group

RPS Group Plc engages in the provision of environmental consultancy services for the infrastructure, urban growth, energy, mining, and natural resource management. It operates through the following segments: Energy, Consulting-UK and Ireland, Services-UK and Netherlands, Norway, North America and Australia Asia Pacific. The company was founded in 1970 and is headquartered in Abingdon, the United Kingdom.