Rubicon Technology (NASDAQ:RBCN – Get Free Report) and TE Connectivity (NYSE:TEL – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Rubicon Technology and TE Connectivity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rubicon Technology | -29.90% | -122.29% | -47.56% |
| TE Connectivity | 20.15% | 18.48% | 10.20% |
Volatility and Risk
Rubicon Technology has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rubicon Technology | 0 | 0 | 0 | 0 | 0.00 |
| TE Connectivity | 1 | 6 | 5 | 0 | 2.33 |
TE Connectivity has a consensus target price of $159.36, suggesting a potential upside of 7.71%. Given TE Connectivity’s stronger consensus rating and higher probable upside, analysts clearly believe TE Connectivity is more favorable than Rubicon Technology.
Insider and Institutional Ownership
0.0% of Rubicon Technology shares are held by institutional investors. Comparatively, 91.4% of TE Connectivity shares are held by institutional investors. 3.6% of Rubicon Technology shares are held by insiders. Comparatively, 0.9% of TE Connectivity shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dividends
Rubicon Technology pays an annual dividend of $11.00 per share and has a dividend yield of 653.8%. TE Connectivity pays an annual dividend of $2.60 per share and has a dividend yield of 1.8%. Rubicon Technology pays out 5,789.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TE Connectivity pays out 25.3% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Rubicon Technology and TE Connectivity”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rubicon Technology | $3.88 million | 1.03 | -$10,000.00 | $0.19 | 8.86 |
| TE Connectivity | $15.85 billion | 2.79 | $3.19 billion | $10.27 | 14.41 |
TE Connectivity has higher revenue and earnings than Rubicon Technology. Rubicon Technology is trading at a lower price-to-earnings ratio than TE Connectivity, indicating that it is currently the more affordable of the two stocks.
Summary
TE Connectivity beats Rubicon Technology on 14 of the 16 factors compared between the two stocks.
About Rubicon Technology
Rubicon Technology, Inc. provides monocrystalline sapphire for applications in optical and industrial systems in North America, Asia, and internationally. The company offers optical and industrial sapphire products in various shapes and sizes, including sheets, rods, tubes, core, ingots, and prisms for a range of end markets comprising defense and aerospace, specialty lighting, instrumentation, sensors and detectors, semiconductor process equipment, electronic substrates, medical, and laser applications. It serves defense subcontractors, industrial manufacturers, fabricators, and resellers. The company was incorporated in 2001 and is based in Bensenville, Illinois.
About TE Connectivity
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, and application tooling products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and interventional medical components, relays, heat shrink tubing, and wires and cables for industrial equipment, aerospace, defense, marine, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. The company sells its products to approximately 140 countries primarily through direct sales to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was founded in 1941 and is based in Schaffhausen, Switzerland.
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