RCM Technologies, Inc. (RCMT) vs Star Equity Holdings, Inc. (STRR)

RCM Technologies, Inc. and Star Equity Holdings, Inc. are both Conglomerates companies. RCM Technologies, Inc. is the larger, with a market value of $271.7M against $36.9M — 7.4× the size. Star Equity Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; RCM Technologies, Inc. trades at 16.2×. Star Equity Holdings, Inc. grew revenue faster over the last twelve months: 52.2% against 11.2%. RCM Technologies, Inc. has the higher net margin (5.13% vs −5.27%) and the higher return on invested capital (24.6% vs −8.53%). Across the 18 metrics below, RCM Technologies, Inc. leads on 11 and Star Equity Holdings, Inc. on 7.

Valuation

Metric RCMT STRR Conglomerates median
P/E 16.16 n/m 16.16
P/S 0.80 0.17 0.80
P/B 5.44 0.61 1.50
Price to free cash flow 11.64 n/m 12.10
EV/EBITDA 11.26 n/m 11.13
EV/Sales 0.95 0.14 1.25
Earnings yield 6.19% (31.19%) 0.37%
Free cash flow yield 8.59% (27.34%) (0.75%)

Profitability

Metric RCMT STRR Conglomerates median
Gross margin 26.91% 42.04% 33.55%
Operating margin 7.73% (3.40%) 2.86%
Net margin 5.13% (5.27%) 0.49%
Free cash flow margin 6.84% (4.74%) (0.47%)
Return on equity 39.51% (22.11%) 0.27%
Return on assets 12.69% (13.49%) 0.00%
Return on invested capital 24.58% (8.53%) 1.29%

Growth

Metric RCMT STRR Conglomerates median
Revenue growth (TTM) 11.24% 52.15% 8.17%
EPS growth (last fiscal year) 27.38% (30.82%) (8.46%)
Revenue growth, 5-year CAGR 16.26% 11.16% 6.01%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RCMT STRR Conglomerates median
Debt to equity 0.48 0.09 0.51
Current ratio 1.92 1.96 1.77
Net debt to EBITDA 0.82 6.09 1.29

Dividend

Metric RCMT STRR Conglomerates median
Dividend yield — — 3.06%
Payout ratio — — 0.30

Size

Metric RCMT STRR Conglomerates median
Market cap 271.70m 36.86m 425.00m

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