Contrasting Resources Connection (RECN) and Higher One Holdings (ONE)
Resources Connection (NASDAQ: RECN) and Higher One Holdings (NYSE:ONE) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
This is a summary of current ratings and recommmendations for Resources Connection and Higher One Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Higher One Holdings||0||0||0||0||N/A|
Resources Connection currently has a consensus target price of $13.50, suggesting a potential upside of 10.66%. Given Resources Connection’s higher probable upside, equities analysts plainly believe Resources Connection is more favorable than Higher One Holdings.
This table compares Resources Connection and Higher One Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Higher One Holdings||-26.77%||-16.36%||-10.01%|
Resources Connection pays an annual dividend of $0.48 per share and has a dividend yield of 3.9%. Higher One Holdings does not pay a dividend. Resources Connection pays out 87.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Resources Connection has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Higher One Holdings has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.
Institutional & Insider Ownership
82.2% of Resources Connection shares are owned by institutional investors. 8.6% of Resources Connection shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Resources Connection and Higher One Holdings’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Resources Connection||$583.41 million||0.62||$41.75 million||$0.55||22.18|
|Higher One Holdings||N/A||N/A||N/A||$0.16||32.19|
Resources Connection has higher revenue and earnings than Higher One Holdings. Resources Connection is trading at a lower price-to-earnings ratio than Higher One Holdings, indicating that it is currently the more affordable of the two stocks.
Resources Connection beats Higher One Holdings on 9 of the 11 factors compared between the two stocks.
Resources Connection Company Profile
Resources Connection, Inc. is a multinational consulting firm. The Company’s operating entities primarily provide services under the name Resources Global Professionals (RGP). The Company provides consulting and business initiative support services to its global client base in the areas of accounting; finance; corporate governance, risk and compliance (GRC) management; corporate advisory, strategic communications and restructuring; information management; human capital; supply chain management, and legal and regulatory. The Company provides its services and solutions to a client base in a range of industries. Its finance and accounting services encompass accounting operations, financial reporting, internal controls, financial analyses and business transactions. It offers a range of technology solutions, which include enterprise resource planning systems; strategic front-of-the-house systems; human resources (HR) information systems, and supply chain management systems, among others.
Higher One Holdings Company Profile
Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.
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