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 superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
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% |
Earnings and Valuation
This table compares Richardson Electronics and Rubicon Technology”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Richardson Electronics | $196.46 million | 1.04 | $60,000.00 | ($0.05) | -283.20 |
| Rubicon Technology | $3.88 million | 1.07 | -$10,000.00 | $0.19 | 9.21 |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Richardson Electronics and Rubicon Technology, as reported by MarketBeat.com.
| 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 currently has a consensus target price of $13.00, indicating a potential downside of 8.19%. Given Richardson Electronics’ stronger consensus rating and higher probable upside, research analysts clearly believe Richardson Electronics is more favorable than Rubicon Technology.
Insider & Institutional 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 insiders. Comparatively, 3.6% of Rubicon Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Richardson Electronics has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
Dividends
Richardson Electronics pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Rubicon Technology pays an annual dividend of $11.00 per share and has a dividend yield of 628.6%. Richardson Electronics pays out -480.0% of its earnings in the form of a dividend. 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.
Summary
Richardson Electronics beats Rubicon Technology on 12 of the 16 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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