Head to Head Review: Surge Components (OTCMKTS:SPRS) versus Rubicon Technology (NASDAQ:RBCN)

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rubicon Technology	$3.88 million	0.95	-$10,000.00	$0.19	8.16
Surge Components	$36.28 million	0.34	$970,000.00	$0.09	24.44

Surge Components has higher revenue and earnings than Rubicon Technology. Rubicon Technology is trading at a lower price-to-earnings ratio than Surge Components, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rubicon Technology and Surge Components’ 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%
Surge Components	1.61%	2.60%	1.99%

Volatility and Risk

Rubicon Technology has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Surge Components has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Rubicon Technology shares are owned by institutional investors. 3.6% of Rubicon Technology shares are owned by insiders. Comparatively, 53.0% of Surge Components shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Surge Components beats Rubicon Technology on 7 of the 11 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 Surge Components

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.