TE Connectivity (NYSE:TEL) versus Rubicon Technology (NASDAQ:RBCN) Critical Survey

TE Connectivity (NYSE:TEL) and Rubicon Technology (NASDAQ:RBCN) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares TE Connectivity and Rubicon Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TE Connectivity	$15.85 billion	2.76	$3.19 billion	$10.27	14.25
Rubicon Technology	$3.88 million	1.08	-$10,000.00	$0.19	9.26

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.

Dividends

TE Connectivity pays an annual dividend of $2.60 per share and has a dividend yield of 1.8%. Rubicon Technology pays an annual dividend of $11.00 per share and has a dividend yield of 625.0%. TE Connectivity pays out 25.3% 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. TE Connectivity has raised its dividend for 11 consecutive years.

Insider & Institutional Ownership

91.4% of TE Connectivity shares are held by institutional investors. Comparatively, 0.0% of Rubicon Technology shares are held by institutional investors. 0.9% of TE Connectivity shares are held by company insiders. Comparatively, 3.6% of Rubicon Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

TE Connectivity has a beta of 1.32, meaning that its stock price is 32% more 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for TE Connectivity and Rubicon Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TE Connectivity	1	6	5	0	2.33
Rubicon Technology	0	0	0	0	0.00

TE Connectivity currently has a consensus price target of $159.36, suggesting a potential upside of 8.93%. Given TE Connectivity’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TE Connectivity is more favorable than Rubicon Technology.

Profitability

This table compares TE Connectivity and Rubicon Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TE Connectivity	20.15%	18.48%	10.20%
Rubicon Technology	-29.90%	-122.29%	-47.56%

Summary

TE Connectivity beats Rubicon Technology on 15 of the 17 factors compared between the two stocks.

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.

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.