Richardson Electronics (NASDAQ:RELL – Get Free Report) and Rubicon Technology (NASDAQ:RBCN – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Volatility and Risk
Richardson Electronics has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Institutional and Insider Ownership
72.0% of Richardson Electronics shares are owned by institutional investors. Comparatively, 0.0% of Rubicon Technology shares are owned by institutional investors. 32.8% of Richardson Electronics shares are owned by company insiders. Comparatively, 3.6% of Rubicon Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Richardson Electronics | 0 | 0 | 1 | 0 | 3.00 |
| Rubicon Technology | 0 | 0 | 0 | 0 | 0.00 |
Richardson Electronics presently has a consensus target price of $13.00, suggesting a potential downside of 9.03%. Given Richardson Electronics’ stronger consensus rating and higher probable upside, analysts plainly believe Richardson Electronics is more favorable than Rubicon Technology.
Valuation and Earnings
This table compares Richardson Electronics and Rubicon Technology”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Richardson Electronics | $196.46 million | 1.05 | $60,000.00 | ($0.05) | -285.80 |
| Rubicon Technology | $2.00 million | 1.88 | -$10,000.00 | $0.19 | 8.30 |
Richardson Electronics has higher revenue and earnings than Rubicon Technology. Richardson Electronics is trading at a lower price-to-earnings ratio than Rubicon Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Richardson Electronics and Rubicon Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Richardson Electronics | -0.40% | -0.24% | -0.20% |
| Rubicon Technology | -29.90% | -122.29% | -47.56% |
Summary
Richardson Electronics beats Rubicon Technology on 11 of the 13 factors compared between the two stocks.
About Richardson Electronics
Richardson Electronics, Ltd. engages in the provision of engineered solutions, power grid and microwave tube, and related consumables worldwide. The Power and Microwave Technologies segment manufactures electron tubes and radio frequency (RF), microwave and power components used in semiconductor manufacturing equipment, RF, and wireless and industrial power applications, as well as various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. This segment also provides thyratrons and rectifiers, power tubes, ignitrons, magnetrons, phototubes, microwave generators, ultracapacitor modules, and liquid crystal display monitors under the Amperex, Cetron, and National brands. The Green Energy Solutions segment offers design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket, and technical service and repair services for various applications, such as wind, solar, hydrogen, and electric vehicles; and other power management applications that support green solutions including synthetic diamond manufacturing. The Canvys segment provides custom display solutions, which includes touch screens, protective panels, custom enclosures, All-In-One computers, specialized cabinet finishes and application specific software packages, and certification services. The Healthcare segment provides diagnostic imaging replacement parts for CT and MRI systems, replacement CT and MRI tubes, CT service training, MRI and RF amplifiers, hydrogen thyratrons, klystrons, magnetrons, flat panel detector upgrades, pre-owned CT systems, and additional replacement solutions. It serves energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company was founded in 1947 and is headquartered in LaFox, Illinois.
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.
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