Resources Connection (RECN) Competitors

Resources Connection (NASDAQ:RECN) and Acacia Research (NASDAQ:ACTG) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation, risk and media sentiment.

Is RECN or ACTG a better dividend stock?

Resources Connection pays an annual dividend of $0.56 per share and has a dividend yield of 12.1%. Acacia Research pays an annual dividend of $0.50 per share and has a dividend yield of 15.2%. Resources Connection pays out 54.4% of its earnings in the form of a dividend. Acacia Research pays out -833.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Acacia Research is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more volatility and risk, RECN or ACTG?

Resources Connection has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Acacia Research has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Which has better valuation and earnings, RECN or ACTG?

Resources Connection has higher revenue and earnings than Acacia Research. Acacia Research is trading at a lower price-to-earnings ratio than Resources Connection, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resources Connection	$729M	0.20	$31.47M	$1.03	4.50
Acacia Research	$247.81M	1.28	-$36.06M	-$0.06	-55.00

Do institutionals & insiders hold more shares of RECN or ACTG?

84.5% of Resources Connection shares are held by institutional investors. Comparatively, 86.7% of Acacia Research shares are held by institutional investors. 10.5% of Resources Connection shares are held by insiders. Comparatively, 1.1% of Acacia Research shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Does the media prefer RECN or ACTG?

In the previous week, Acacia Research's average media sentiment score of 1.88 beat Resources Connection's score of 0.00 indicating that Acacia Research is being referred to more favorably in the news media.

Company	Overall Sentiment
Resources Connection	Neutral
Acacia Research	Very Positive

Is RECN or ACTG more profitable?

Resources Connection has a net margin of 4.52% compared to Acacia Research's net margin of -2.60%. Resources Connection's return on equity of 11.74% beat Acacia Research's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Resources Connection	4.52%	11.74%	7.30%
Acacia Research	-2.60%	1.33%	1.00%

Summary

Resources Connection beats Acacia Research on 9 of the 14 factors compared between the two stocks.