Rubicon Technology (NASDAQ:RBCN – Get Free Report) and TE Connectivity (NYSE:TEL – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Volatility & Risk
Rubicon Technology has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, TE Connectivity has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
Institutional & Insider Ownership
0.0% of Rubicon Technology shares are owned by institutional investors. Comparatively, 91.4% of TE Connectivity shares are owned by institutional investors. 3.6% of Rubicon Technology shares are owned by company insiders. Comparatively, 0.9% of TE Connectivity shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Rubicon Technology | -29.90% | -122.29% | -47.56% |
| TE Connectivity | 20.15% | 18.48% | 10.20% |
Analyst Ratings
This is a summary of current ratings and target prices for Rubicon Technology and TE Connectivity, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rubicon Technology | 0 | 0 | 0 | 0 | 0.00 |
| TE Connectivity | 1 | 6 | 5 | 0 | 2.33 |
TE Connectivity has a consensus target price of $159.55, suggesting a potential upside of 5.06%. Given TE Connectivity’s stronger consensus rating and higher probable upside, analysts clearly believe TE Connectivity is more favorable than Rubicon Technology.
Earnings and Valuation
This table compares Rubicon Technology and TE Connectivity”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 | 1.69 | -$10,000.00 | $0.19 | 7.47 |
| TE Connectivity | $15.85 billion | 2.87 | $3.19 billion | $10.27 | 14.79 |
TE Connectivity has higher revenue and earnings than Rubicon Technology. Rubicon Technology is trading at a lower price-to-earnings ratio than TE Connectivity, indicating that it is currently the more affordable of the two stocks.
Summary
TE Connectivity beats Rubicon Technology on 13 of the 14 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 TE Connectivity
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, and application tooling products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and interventional medical components, relays, heat shrink tubing, and wires and cables for industrial equipment, aerospace, defense, marine, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. The company sells its products to approximately 140 countries primarily through direct sales to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was founded in 1941 and is based in Schaffhausen, Switzerland.
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