Contrasting Auto Parts 4Less Group (OTC:FLES) and Resources Connection (NASDAQ:RGP)

Resources Connection (NASDAQ:RGP) and Auto Parts 4Less Group (OTC:FLES) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Risk & Volatility

Resources Connection has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Auto Parts 4Less Group has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Profitability

This table compares Resources Connection and Auto Parts 4Less Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resources Connection	3.32%	6.19%	4.95%
Auto Parts 4Less Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Resources Connection and Auto Parts 4Less Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resources Connection	1	1	1	0	2.00
Auto Parts 4Less Group	0	0	0	0	N/A

Resources Connection presently has a consensus price target of $13.00, indicating a potential upside of 38.30%. Given Resources Connection’s higher possible upside, equities analysts clearly believe Resources Connection is more favorable than Auto Parts 4Less Group.

Insider and Institutional Ownership

93.2% of Resources Connection shares are owned by institutional investors. 7.4% of Resources Connection shares are owned by company insiders. Comparatively, 26.3% of Auto Parts 4Less Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Resources Connection and Auto Parts 4Less Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resources Connection	$632.80 million	0.50	$21.03 million	$0.66	14.24
Auto Parts 4Less Group	$4.20 million	0.00	-$17.78 million	($5.73)	0.00

Resources Connection has higher revenue and earnings than Auto Parts 4Less Group. Auto Parts 4Less Group is trading at a lower price-to-earnings ratio than Resources Connection, indicating that it is currently the more affordable of the two stocks.

Summary

Resources Connection beats Auto Parts 4Less Group on 11 of the 13 factors compared between the two stocks.

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.

About Auto Parts 4Less Group

Auto Parts 4Less Group, Inc., operates as an e-commerce auto and truck parts sales company in the United States. The company offers automotive parts, including exhaust systems, suspension systems, wheels, tires, stereo systems, truck bed covers, and shocks for cars, trucks, boats, motorcycles, RVs, and other parts through AutoParts4Less.com. The company was formerly known as The 4Less Group, Inc. and changed its name to Auto Parts 4Less Group, Inc. in April 2022. Auto Parts 4Less Group, Inc. is based in Las Vegas, Nevada.