Analyzing Resources Connection (NASDAQ:RGP) and Spindle (OTCMKTS:SPDL)

Spindle (OTCMKTS:SPDL) and Resources Connection (NASDAQ:RGP) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Earnings & Valuation

This table compares Spindle and Resources Connection”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spindle	N/A	N/A	N/A	N/A	N/A
Resources Connection	$582.06 million	0.49	$21.03 million	($1.86)	-4.63

Resources Connection has higher revenue and earnings than Spindle.

Institutional and Insider Ownership

93.2% of Resources Connection shares are owned by institutional investors. 14.6% of Spindle shares are owned by insiders. Comparatively, 3.4% of Resources Connection shares are owned 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 current ratings for Spindle and Resources Connection, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spindle	0	0	0	0	0.00
Resources Connection	1	1	1	0	2.00

Resources Connection has a consensus target price of $13.00, suggesting a potential upside of 50.81%. Given Resources Connection’s stronger consensus rating and higher probable upside, analysts clearly believe Resources Connection is more favorable than Spindle.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spindle	N/A	N/A	N/A
Resources Connection	-10.55%	3.75%	2.98%

Summary

Resources Connection beats Spindle on 7 of the 9 factors compared between the two stocks.

About Spindle

Spindle, Inc. provides payment-processing services to merchants using its Catalyst Gateway. It also acts as an agent, independent contractor, or referral partner to broker merchants that it secures to other merchant processors for ongoing fees based on processing volume. The company serves small and medium-sized businesses. The company is based in Marco Island, Florida.

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.