Contrasting Resources Connection (NASDAQ:RGP) & Medical Cannabis Payment Solutions (OTCMKTS:REFG)

Medical Cannabis Payment Solutions (OTCMKTS:REFG) and Resources Connection (NASDAQ:RGP) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Risk and Volatility

Medical Cannabis Payment Solutions has a beta of -0.13, meaning that its share price is 113% less volatile than the S&P 500. Comparatively, Resources Connection has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares Medical Cannabis Payment Solutions and Resources Connection’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medical Cannabis Payment Solutions	N/A	N/A	N/A
Resources Connection	2.04%	3.69%	2.94%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Medical Cannabis Payment Solutions and Resources Connection, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medical Cannabis Payment Solutions	0	0	0	0	0.00
Resources Connection	1	1	1	0	2.00

Resources Connection has a consensus target price of $13.00, suggesting a potential upside of 43.17%. Given Resources Connection’s stronger consensus rating and higher probable upside, analysts plainly believe Resources Connection is more favorable than Medical Cannabis Payment Solutions.

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. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Medical Cannabis Payment Solutions and Resources Connection”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medical Cannabis Payment Solutions	$140,000.00	0.00	-$30,000.00	N/A	N/A
Resources Connection	$599.57 million	0.51	$21.03 million	$0.36	25.22

Resources Connection has higher revenue and earnings than Medical Cannabis Payment Solutions.

Summary

Resources Connection beats Medical Cannabis Payment Solutions on 11 of the 11 factors compared between the two stocks.

About Medical Cannabis Payment Solutions

Medical Cannabis Payment Solutions, Inc. develops and markets a payment system for medical cannabis transactions. Its solution assists in the state tracking of sales, collection of tax, and supervision of sales to consumers. The company was incorporated in 2013 and is based in Cheyenne, Wyoming. On August 12, 2024, Medical Cannabis Payment Solutions, Inc. filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the Western District of Pennsylvania.

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.