Syntec Optics (NASDAQ:OPTX – Get Free Report) and Richardson Electronics (NASDAQ:RELL – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Volatility & Risk
Syntec Optics has a beta of -0.76, indicating that its stock price is 176% less volatile than the S&P 500. Comparatively, Richardson Electronics has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Insider & Institutional Ownership
72.0% of Richardson Electronics shares are owned by institutional investors. 0.8% of Syntec Optics shares are owned by insiders. Comparatively, 31.7% of Richardson Electronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Syntec Optics | $28.08 million | 12.75 | -$1.79 million | ($0.06) | -148.17 |
| Richardson Electronics | $228.56 million | 1.29 | $6.38 million | $0.44 | 45.45 |
Richardson Electronics has higher revenue and earnings than Syntec Optics. Syntec Optics is trading at a lower price-to-earnings ratio than Richardson Electronics, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Syntec Optics and Richardson Electronics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Syntec Optics | 1 | 0 | 0 | 0 | 1.00 |
| Richardson Electronics | 0 | 2 | 1 | 0 | 2.33 |
Richardson Electronics has a consensus target price of $24.00, indicating a potential upside of 20.00%. Given Richardson Electronics’ stronger consensus rating and higher possible upside, analysts plainly believe Richardson Electronics is more favorable than Syntec Optics.
Profitability
This table compares Syntec Optics and Richardson Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Syntec Optics | -8.26% | -16.50% | -8.68% |
| Richardson Electronics | 2.79% | 3.55% | 2.83% |
Summary
Richardson Electronics beats Syntec Optics on 13 of the 14 factors compared between the two stocks.
About Syntec Optics
Syntec Optics Holdings, Inc. manufactures and supplies integrated optics for biomedical, defense and military, consumer, and other applications. It offers camera modules; tool design, design for manufacturing, optical and opto-mechanical design, and moldflow analysis; SPDT optics, such as freedom optics, microlens arrays, spheres and aspheres, diffractives, SPDT materials, and optical tooling; replicative molding, that includes polymer and glass molding, and molded production materials; thin film coating and coating curve materials; and precision machining and precision machining materials. The company also provides clean room assembly, such as opto mechanical, opto electronic, and integrated photonics; infrared optics, microlens arrays, software development, and optical metrology, and catalog optics services. In addition, it offers driverless cars, integrated photonics, robotics, sensors, VR and AR, machine vision, facial imagining, heads up display, finger print scanners, and laser scanners technology for consumers; night vision goggles, missile laser guides, biometrics, infrared and thermal imaging, ordnance optics, head mounted displays, 2D and 3D scanners, humvee lighting , laser targeting, protective domes and windows, and lidar technologies for defense and miliary; and medical diagnostic, microfluidics, surgical components and systems, and medical sensing technology for medical sectors. The company was founded in 1981 and is based in Rochester, New York.
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.
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