Head to Head Analysis: Richardson Electronics (NASDAQ:RELL) versus Rogers (NYSE:ROG)

Rogers (NYSE:ROG) and Richardson Electronics (NASDAQ:RELL) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Rogers and Richardson Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rogers	0	2	1	1	2.75
Richardson Electronics	0	1	2	0	2.67

Rogers currently has a consensus price target of $225.00, suggesting a potential upside of 52.80%. Richardson Electronics has a consensus price target of $24.00, suggesting a potential upside of 15.44%. Given Rogers’ stronger consensus rating and higher possible upside, equities analysts plainly believe Rogers is more favorable than Richardson Electronics.

Insider and Institutional Ownership

96.0% of Rogers shares are held by institutional investors. Comparatively, 72.0% of Richardson Electronics shares are held by institutional investors. 1.1% of Rogers shares are held by company insiders. Comparatively, 31.7% of Richardson Electronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Rogers and Richardson Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers	$834.80 million	3.15	-$61.80 million	$1.75	84.14
Richardson Electronics	$228.56 million	1.34	$6.38 million	$0.58	35.84

Richardson Electronics has lower revenue, but higher earnings than Rogers. Richardson Electronics is trading at a lower price-to-earnings ratio than Rogers, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Rogers has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Richardson Electronics has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Profitability

This table compares Rogers and Richardson Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rogers	3.75%	5.17%	4.31%
Richardson Electronics	3.57%	4.82%	3.85%

Summary

Rogers beats Richardson Electronics on 11 of the 15 factors compared between the two stocks.

About Rogers

Rogers Corporation engages in the design, development, manufacture, and sale of engineered materials and components worldwide. It operates through Advanced Electronics Solutions (AES), Elastomeric Material Solutions (EMS), and Other segments. The AES segment offers circuit materials, ceramic substrate materials, busbars, and cooling solutions for applications in electric and hybrid electric vehicles (EV/HEV), wireless infrastructure, automotive, renewable energy, aerospace and defense, mass transit, industrial, connected devices, and wired infrastructure. This segment sells its products under the curamik, ROLINX, RO4000, RO3000, RT/duroid, CLTE Series, TMM, AD Series, DiClad, CuClad Series, Kappa, COOLSPAN, TC Series, IsoClad, MAGTREX, IM, 2929 Bondply, SpeedWave Prepreg, RO4400/RO4400T, and Radix names. The EMS segment provides engineered material solutions, including polyurethane and silicone materials used in cushioning, gasketing, sealing, and vibration management applications; customized silicones used in flex heater and semiconductor thermal applications; and polytetrafluoroethylene and ultra-high molecular weight polyethylene materials used in wire and cable protection, electrical insulation, conduction and shielding, hose and belt protection, vibration management, cushioning, gasketing and sealing, and venting applications. This segment sells its products under the PORON, BISCO, DeWAL, ARLON, eSorba, XRD, Silicone Engineering, and R/bak names. The Other segment provides elastomer components; and elastomer floats for level sensing in fuel tanks, motors, and storage tanks for applications in the general industrial and automotive markets under the ENDUR and NITROPHYL names. The company was founded in 1832 and is headquartered in Chandler, Arizona.

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.