Rubicon Technology (NASDAQ:RBCN – Get Free Report) and Richardson Electronics (NASDAQ:RELL – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Volatility and Risk
Rubicon Technology has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Richardson Electronics has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
Institutional and Insider Ownership
0.0% of Rubicon Technology shares are held by institutional investors. Comparatively, 72.0% of Richardson Electronics shares are held by institutional investors. 3.6% of Rubicon Technology shares are held by company insiders. Comparatively, 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 company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rubicon Technology | 0 | 0 | 0 | 0 | 0.00 |
| Richardson Electronics | 0 | 0 | 1 | 0 | 3.00 |
Richardson Electronics has a consensus target price of $13.00, suggesting a potential downside of 9.03%. Given Richardson Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Richardson Electronics is more favorable than Rubicon Technology.
Profitability
This table compares Rubicon Technology and Richardson Electronics’ 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% |
| Richardson Electronics | -0.40% | -0.24% | -0.20% |
Earnings & Valuation
This table compares Rubicon Technology and Richardson Electronics”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rubicon Technology | $2.00 million | 1.88 | -$10,000.00 | $0.19 | 8.30 |
| Richardson Electronics | $196.46 million | 1.05 | $60,000.00 | ($0.05) | -285.80 |
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.
Summary
Richardson Electronics beats Rubicon Technology on 11 of the 13 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 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.
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