Resources Connection (NASDAQ:RGP) & Spindle (OTCMKTS:SPDL) Critical Analysis

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

Institutional and Insider Ownership

93.2% of Resources Connection shares are held by institutional investors. 3.4% of Resources Connection shares are held by insiders. Comparatively, 14.6% of Spindle shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Analyst Ratings

This is a summary of current ratings and target prices for Resources Connection and Spindle, as reported by MarketBeat.com.

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

Resources Connection presently has a consensus price target of $13.00, indicating 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.

Earnings and Valuation

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

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

Resources Connection has higher revenue and earnings than Spindle.

Summary

Resources Connection beats Spindle on 7 of the 9 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 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.