RF Industries (NASDAQ:RFIL – Get Free Report) and Ouster (NASDAQ:OUST – Get Free Report) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Volatility and Risk
RF Industries has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Ouster has a beta of 3.23, meaning that its share price is 223% more volatile than the S&P 500.
Institutional & Insider Ownership
23.5% of RF Industries shares are owned by institutional investors. Comparatively, 31.5% of Ouster shares are owned by institutional investors. 20.4% of RF Industries shares are owned by company insiders. Comparatively, 5.7% of Ouster shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares RF Industries and Ouster’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RF Industries | 2.83% | 15.32% | 7.80% |
| Ouster | -26.02% | -17.49% | -12.97% |
Valuation & Earnings
This table compares RF Industries and Ouster”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RF Industries | $86.31 million | 0.97 | $80,000.00 | $0.22 | 34.91 |
| Ouster | $169.38 million | 12.34 | -$60.38 million | ($0.86) | -33.70 |
RF Industries has higher earnings, but lower revenue than Ouster. Ouster is trading at a lower price-to-earnings ratio than RF Industries, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for RF Industries and Ouster, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RF Industries | 0 | 2 | 2 | 0 | 2.50 |
| Ouster | 1 | 1 | 6 | 0 | 2.62 |
RF Industries presently has a consensus target price of $14.50, indicating a potential upside of 88.80%. Ouster has a consensus target price of $54.67, indicating a potential upside of 88.64%. Given RF Industries’ higher probable upside, equities research analysts clearly believe RF Industries is more favorable than Ouster.
Summary
RF Industries beats Ouster on 8 of the 14 factors compared between the two stocks.
About RF Industries
RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States, Canada, Italy, Mexico, and internationally. The company operates through two segments, RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly. The company designs, manufactures, and distributes various coaxial connectors and cable assemblies that are integrated with coaxial connectors; custom copper and fiber cable assemblies, complex hybrid fiber optic and power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment; energy-efficient cooling systems for wireless base stations and remote equipment shelters; and custom-designed pole-ready 5G small cell integrated enclosures. It also designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, medical, and military customers; connectivity solutions to telecommunications and data communications distributors; thermal control systems; and radio frequency and microwave distribution system products, such as dividers, directional couplers, and filters. The company sells its products through warehousing distributors and in-house marketing and sales team. It serves telecommunications carriers and equipment manufacturers, wireless and network infrastructure carriers, and original equipment manufacturers. The company was formerly known as Celltronics, Inc. and changed its name RF Industries, Ltd. in November 1990. RF Industries, Ltd. was incorporated in 1979 and is headquartered in San Diego, California.
About Ouster
Ouster, Inc. provides lidar sensors for the automotive, industrial, robotics, and smart infrastructure industries in Americas, the Asia-Pacific, Europe, the Middle East, and Africa. Its products include high-resolution scanning and solid-state digital lidar sensors, analog lidar sensors, and software solutions. The company offers Ouster Sensor, a scanning sensor; and Digital Flash, a solid-state flash sensor. It also provides surround-view lidar sensors, which include Ouster Gemini, a perception platform for smart infrastructure deployments; and Blue City, a Gemini-powered solution for traffic operations, planning, and safety. The company is headquartered in San Francisco, California.
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