Harte Hanks, Inc. (HHS) vs RCM Technologies, Inc. (RCMT)

Harte Hanks, Inc. and RCM Technologies, Inc. are both Conglomerates companies. RCM Technologies, Inc. is the larger, with a market value of $288.6M against $34.6M — 8.3× the size. Harte Hanks, Inc. has negative trailing earnings, so its P/E is not meaningful; RCM Technologies, Inc. trades at 17.5×. RCM Technologies, Inc. grew revenue faster over the last twelve months: 11.2% against −11.6%. RCM Technologies, Inc. has the higher net margin (5.13% vs −3.70%) and the higher return on invested capital (24.6% vs −23.1%). Across the 18 metrics below, RCM Technologies, Inc. leads on 12 and Harte Hanks, Inc. on 6.

Valuation

Metric HHS RCMT Conglomerates median
P/E n/m 17.47 17.47
P/S 0.22 0.86 0.88
P/B 2.23 5.88 1.40
Price to free cash flow n/m 12.58 12.58
EV/EBITDA n/m 10.90 11.36
EV/Sales 0.30 0.91 1.37
Earnings yield (16.49%) 5.73% 0.65%
Free cash flow yield (4.23%) 7.95% 0.00%

Profitability

Metric HHS RCMT Conglomerates median
Gross margin 16.86% 26.91% 33.55%
Operating margin (3.15%) 7.73% 3.36%
Net margin (3.70%) 5.13% 0.97%
Free cash flow margin (0.94%) 6.84% (0.94%)
Return on equity (30.41%) 39.51% 0.75%
Return on assets (6.24%) 12.69% 0.10%
Return on invested capital (23.11%) 24.58% 0.73%

Growth

Metric HHS RCMT Conglomerates median
Revenue growth (TTM) (11.62%) 11.24% 8.17%
EPS growth (last fiscal year) 97.35% 27.38% —
Revenue growth, 5-year CAGR (2.04%) 16.26% 6.01%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HHS RCMT Conglomerates median
Debt to equity 0.20 0.48 0.48
Current ratio 1.30 1.92 1.79
Net debt to EBITDA (1.15) 0.82 1.36

Dividend

Metric HHS RCMT Conglomerates median
Dividend yield — — 2.53%
Payout ratio 0.00 0.00 0.00

Size

Metric HHS RCMT Conglomerates median
Market cap 34.62m 288.63m 519.65m

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