Analyzing Corpay (NYSE:CPAY) and Resources Connection (NASDAQ:RGP)

Corpay (NYSE:CPAY) and Resources Connection (NASDAQ:RGP) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Volatility & Risk

Corpay has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Resources Connection has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Corpay and Resources Connection”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$3.88 billion	6.15	$981.89 million	$14.02	24.38
Resources Connection	$599.57 million	0.51	$21.03 million	$0.36	25.22

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

Profitability

This table compares Corpay and Resources Connection’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corpay	26.14%	39.44%	7.54%
Resources Connection	2.04%	3.69%	2.94%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Corpay and Resources Connection, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	4	10	1	2.80
Resources Connection	1	1	1	0	2.00

Corpay currently has a consensus target price of $369.29, indicating a potential upside of 8.03%. Resources Connection has a consensus target price of $13.00, indicating a potential upside of 43.17%. Given Resources Connection’s higher possible upside, analysts clearly believe Resources Connection is more favorable than Corpay.

Institutional & Insider Ownership

98.8% of Corpay shares are owned by institutional investors. Comparatively, 93.2% of Resources Connection shares are owned by institutional investors. 6.1% of Corpay shares are owned by company insiders. Comparatively, 3.4% of Resources Connection shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Corpay beats Resources Connection on 13 of the 15 factors compared between the two stocks.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

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.