Richardson Electronics (NASDAQ:RELL – Get Free Report) and Vontier (NYSE:VNT – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Dividends
Richardson Electronics pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Vontier pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. Richardson Electronics pays out 41.4% of its earnings in the form of a dividend. Vontier pays out 4.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Risk and Volatility
Richardson Electronics has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Vontier has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Richardson Electronics | 0 | 1 | 2 | 0 | 2.67 |
| Vontier | 1 | 3 | 4 | 0 | 2.38 |
Richardson Electronics currently has a consensus price target of $24.00, indicating a potential upside of 15.44%. Vontier has a consensus price target of $41.00, indicating a potential upside of 27.14%. Given Vontier’s higher possible upside, analysts plainly believe Vontier is more favorable than Richardson Electronics.
Valuation and Earnings
This table compares Richardson Electronics and Vontier”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Richardson Electronics | $228.56 million | 1.34 | $6.38 million | $0.58 | 35.84 |
| Vontier | $3.08 billion | 1.42 | $406.10 million | $2.41 | 13.38 |
Vontier has higher revenue and earnings than Richardson Electronics. Vontier is trading at a lower price-to-earnings ratio than Richardson Electronics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
72.0% of Richardson Electronics shares are owned by institutional investors. Comparatively, 95.8% of Vontier shares are owned by institutional investors. 31.7% of Richardson Electronics shares are owned by company insiders. Comparatively, 1.1% of Vontier shares are owned 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.
Profitability
This table compares Richardson Electronics and Vontier’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Richardson Electronics | 3.57% | 4.82% | 3.85% |
| Vontier | 11.34% | 38.57% | 11.30% |
Summary
Vontier beats Richardson Electronics on 11 of the 16 factors compared between the two stocks.
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.
About Vontier
Vontier Corporation provides mobility ecosystem solutions worldwide. The company operates through Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions segments. The Mobility Technologies segment provides digitally equipment solutions for mobility ecosystem, such as point-of-sale and payment systems, workflow automation, telematics, data analytics, software platform, and integrated solutions for alternative fuel dispensing. The Repair Solutions segment manufactures and distributes vehicle repair tools, toolboxes, automotive diagnostic equipment and software through mobile franchise network. The Environmental and Fueling Solutions segment offers environmental, fueling hardware, software, and aftermarket solutions for fueling infrastructures. It also offers a range of solutions, including environmental sensors; fueling equipment; field payment hardware; point-of sale, workflow, and monitoring software; vehicle tracking and fleet management; software solutions for EV charging; and vehicle mechanics, and technicians equipment. The company markets its products and services to retail and commercial fueling, convenience store, and car wash operators; commercial vehicle repair businesses, fleet owners/operators and electric vehicle charging network operators, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. Vontier Corporation was incorporated in 2019 and is headquartered in Raleigh, North Carolina.
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