Rubicon Technology (NASDAQ:RBCN) vs. Richardson Electronics (NASDAQ:RELL) Critical Review

Rubicon Technology (NASDAQ:RBCNGet Free Report) and Richardson Electronics (NASDAQ:RELLGet Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

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%

Analyst Ratings

This is a summary of current recommendations for Rubicon Technology and Richardson Electronics, as reported by MarketBeat.

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 7.87%. Given Richardson Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Richardson Electronics is more favorable than Rubicon Technology.

Valuation & Earnings

This table compares Rubicon Technology 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
Rubicon Technology $2.00 million 2.08 -$10,000.00 $0.19 9.21
Richardson Electronics $197.60 million 1.03 $60,000.00 ($0.05) -282.20

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.

Risk & Volatility

Rubicon Technology has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Richardson Electronics has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Rubicon Technology shares are held by institutional investors. Comparatively, 71.9% of Richardson Electronics shares are held by institutional investors. 3.6% of Rubicon Technology shares are held by insiders. Comparatively, 32.8% of Richardson Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Richardson Electronics beats Rubicon Technology on 11 of the 14 factors compared between the two stocks.

About Rubicon Technology

(Get Free Report)

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

(Get Free Report)

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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