Comparing Cartesian (CRTN) and RMR Group (RMR)

Cartesian (OTCMKTS:CRTN) and RMR Group (NASDAQ:RMR) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Volatility & Risk

Cartesian has a beta of -0.53, indicating that its share price is 153% less volatile than the S&P 500. Comparatively, RMR Group has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cartesian and RMR Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cartesian $50.77 million 0.07 -$6.24 million N/A N/A
RMR Group $271.73 million 7.99 $42.29 million $3.79 18.39

RMR Group has higher revenue and earnings than Cartesian.

Institutional & Insider Ownership

18.2% of RMR Group shares are owned by institutional investors. 9.5% of Cartesian shares are owned by insiders. Comparatively, 14.8% of RMR Group 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.

Analyst Recommendations

This is a breakdown of current ratings for Cartesian and RMR Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cartesian 0 0 0 0 N/A
RMR Group 0 2 0 0 2.00

RMR Group has a consensus target price of $89.00, indicating a potential upside of 27.73%. Given RMR Group’s higher possible upside, analysts plainly believe RMR Group is more favorable than Cartesian.

Profitability

This table compares Cartesian and RMR Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cartesian -15.30% -386.24% -33.67%
RMR Group 23.43% 9.97% 8.03%

Dividends

RMR Group pays an annual dividend of $1.40 per share and has a dividend yield of 2.0%. Cartesian does not pay a dividend. RMR Group pays out 36.9% of its earnings in the form of a dividend.

Summary

RMR Group beats Cartesian on 11 of the 12 factors compared between the two stocks.

About Cartesian

Cartesian, Inc., a management consulting company, provides consulting services and managed solutions to communications, digital media, and technology sectors in the United States, the United Kingdom, and Western Europe. It provides technical consultancy services in the areas of requirements definition and capture; data analysis; selecting and implementing mediation; provisioning; customer and inter-operator billing; integration systems to provide resilient automated processes; migrating end-customer products; customers and networks; planning, managing, and executing end-to-end systems; and software testing. The company also offers strategy and business case development services, including business case development, data and content strategies, marketing spending optimization, service and brand diversification, enterprise and small business strategies, technology commercialization, and operational strategies; and marketing services. In addition, it offers program management services; business and operations process redesign and reengineering services; and Ascertain, a revenue management and data integrity toolset that provides evaluation of processes, metrics, and control points. Further, the company provides investment advisory services, such as evaluation of management teams and business plans, and identification of strengths and weakness of the company, as well as analyses of the company's financial models, systems, products, and operational and business processes. It serves wireless and wireline service providers, and cable multiple systems operators, as well as technology companies, media and entertainment companies, and financial services firms that invest in the communications industry. The company was formerly known as The Management Network Group, Inc. and changed its name to Cartesian, Inc. in June 2014. Cartesian, Inc. was founded in 1990 and is based in Overland Park, Kansas.

About RMR Group

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. It provides management services to its four publicly traded real estate investment trusts (REITs) and three real estate operating companies. As of September 30, 2017, the company had approximately 1,400 properties under management, which are primarily owned by its Managed Equity REITs. It also provides investment advisory services. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in September 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

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