Contrasting FIT Hon Teng (OTCMKTS:FITGF) and Richardson Electronics (NASDAQ:RELL)

FIT Hon Teng (OTCMKTS:FITGF) and Richardson Electronics (NASDAQ:RELL) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares FIT Hon Teng and Richardson Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FIT Hon Teng	N/A	N/A	N/A
Richardson Electronics	-0.40%	-0.24%	-0.20%

Valuation and Earnings

This table compares FIT Hon Teng and Richardson Electronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FIT Hon Teng	N/A	N/A	N/A	N/A	N/A
Richardson Electronics	$196.46 million	0.99	$60,000.00	($0.05)	-271.20

Richardson Electronics has higher revenue and earnings than FIT Hon Teng.

Analyst Ratings

This is a summary of current ratings and price targets for FIT Hon Teng and Richardson Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FIT Hon Teng	0	0	0	0	N/A
Richardson Electronics	0	0	1	0	3.00

Richardson Electronics has a consensus target price of $13.00, suggesting a potential downside of 4.13%. Given Richardson Electronics’ higher possible upside, analysts clearly believe Richardson Electronics is more favorable than FIT Hon Teng.

Insider & Institutional Ownership

72.0% of Richardson Electronics shares are held by institutional investors. 32.8% of Richardson Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Richardson Electronics beats FIT Hon Teng on 5 of the 8 factors compared between the two stocks.

About FIT Hon Teng

FIT Hon Teng Limited manufactures and sells mobile and wireless devices and connectors in Taiwan and internationally. It operates in two segments, Intermediate Products and Consumer Products. The company provides RF antenna cable and module assemblies; coaxial, internal, external, RJ, wire harness, USB, E/M, EM, flat, high speed, power, ribbon, SAS, and S-ATA cable assemblies; light source products; backplane, card, edgecard, memory, high speed, input/output, power, storage, and wire to board/board to board connectors; sockets and terminal blocks; and wired headsets, speaker systems, and power accessories. It also engages in the development, manufacture, and marketing of electronic and optoelectronic connectors, antennas, acoustic components, and cables and modules; sale of interconnect solutions; sale of consumer electronics and connectivity solutions; warehousing, distribution, and sale activities; development of technologies in the field of dynamic loudspeakers and acoustic technologies; and research, development, and manufacture of acoustic components. In addition, the company is involved in acquisition, holding, managing, administering, coordinating, controlling, and disposing of investments; development and production of cable harnesses and wiring systems; design, development, manufacture, and sale of automobile and household related components, as well as provision of related aftersales services; technology consulting and sale of self-produced products; and manufacture of electronic components, auxiliary equipment, and motor vehicle parts. The company offers its products under the Belkin, Wemo, and Phyn brands. The company was formerly known as New Wing International Holdings Limited and changed its name to FIT Hon Teng Limited in June 2013. The company was founded in 1981 and is headquartered in New Taipei City, Taiwan. FIT Hon Teng Limited is a subsidiary of Foxconn (Far East) Limited.

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.