TTEC (NASDAQ:TTEC) and R C M Technologies (NASDAQ:RCMT) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
25.2% of TTEC shares are held by institutional investors. Comparatively, 28.7% of R C M Technologies shares are held by institutional investors. 69.6% of TTEC shares are held by insiders. Comparatively, 12.2% of R C M Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares TTEC and R C M Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TTEC | -1.71% | 20.76% | 6.86% |
| R C M Technologies | 1.21% | 29.57% | 9.39% |
Analyst Ratings
This is a summary of current recommendations and price targets for TTEC and R C M Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TTEC | 0 | 0 | 0 | 0 | N/A |
| R C M Technologies | 0 | 0 | 0 | 0 | N/A |
Volatility and Risk
TTEC has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, R C M Technologies has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.
Valuation and Earnings
This table compares TTEC and R C M Technologies’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TTEC | $1.48 billion | 1.03 | $7.25 million | $1.80 | 18.24 |
| R C M Technologies | $186.74 million | 0.26 | $2.01 million | N/A | N/A |
TTEC has higher revenue and earnings than R C M Technologies.
Dividends
TTEC pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. R C M Technologies does not pay a dividend. TTEC pays out 31.1% of its earnings in the form of a dividend. TTEC has increased its dividend for 3 consecutive years.
Summary
TTEC beats R C M Technologies on 8 of the 13 factors compared between the two stocks.
TTEC Company Profile
TTEC Holdings, Inc. designs, builds, and operates omni-channel customer experiences. It operates through four segments: Customer Management Services (CMS), Customer Growth Services (CGS), Customer Technology Services (CTS), and Customer Strategy Services (CSS). The CMS segment offers customer experience delivery solutions, which integrate technology with customer experience professionals to optimize the customer experience across various channels and stages of the customer lifecycle from an onshore, offshore, or work-from-home environments. The CGS segment provides technology-enabled sales and marketing solutions, including sales advisory, search engine optimization, digital demand generation, and lead qualification, as well as acquisition sales, growth, and retention services. The CTS segment offers system design consulting, customer experience technology product, and implementation and integration consulting services, as well as manages clients’ cloud and on-premise solutions. The CSS segment provides professional services in customer experience strategy and operations, insights, system and operational process optimization, and culture development and knowledge management. TTEC Holdings, Inc. also offers digital trust and safety, and health services. The company serves clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, retail, technology, transportation, and travel industries. It has operations in the United States, Australia, Belgium, Brazil, Bulgaria, Canada, China, Costa Rica, Germany, Hong Kong, India, Ireland, Lebanon, Macedonia, Mexico, New Zealand, the Philippines, Poland, Singapore, South Africa, Thailand, Turkey, the United Arab Emirates, and the United Kingdom. The company was formerly known as TeleTech Holdings, Inc. and changed its name to TTEC Holdings, Inc. in January 2018. TTEC Holdings, Inc. was founded in 1982 and is headquartered in Englewood, Colorado.
R C M Technologies Company Profile
RCM Technologies, Inc. provides business and technology solutions to the commercial and government sectors in the United States, Canada, the Puerto Rico, and Serbia. The company operates through three segments: Engineering, Specialty Health Care, and Information Technology. The Engineering segment provides 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 Services segment provides long-term and short-term staffing, executive search, and placement services in the fields of rehabilitation, including physical therapists, occupational therapists, and speech language pathologists; nursing; managed care; allied health care; health care management; medical office support; and non-medical caregivers or companions. This segment also offers in-patient, outpatient, sub-acute and acute care, multilingual speech pathology, rehabilitation, geriatric, pediatric, and adult day care services to hospitals, long-term care facilities, schools, sports medicine facilities, and private practices. The Information Technology segment offers enterprise business solutions, application services, infrastructure solutions, competitive advantage and productivity solutions, life sciences solutions, and other vertical market specific solutions. The company also serves aerospace/defense, educational institution, energy, financial services, health care, life sciences, manufacturing and distribution, and the public sector and technology industries. RCM Technologies, Inc. was founded in 1971 and is headquartered in Pennsauken, New Jersey.
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