Financial Review: Research Frontiers (NASDAQ:REFR) vs. Knowles (NYSE:KN)

Knowles (NYSE:KN) and Research Frontiers (NASDAQ:REFR) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Valuation and Earnings

This table compares Knowles and Research Frontiers”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knowles	$593.20 million	4.46	$44.20 million	$0.82	38.09
Research Frontiers	$1.12 million	11.39	-$2.05 million	($0.07)	-5.23

Knowles has higher revenue and earnings than Research Frontiers. Research Frontiers is trading at a lower price-to-earnings ratio than Knowles, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Knowles and Research Frontiers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knowles	0	2	2	1	2.80
Research Frontiers	1	0	0	0	1.00

Knowles presently has a consensus price target of $41.00, indicating a potential upside of 31.26%. Given Knowles’ stronger consensus rating and higher probable upside, equities analysts plainly believe Knowles is more favorable than Research Frontiers.

Volatility and Risk

Knowles has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Knowles and Research Frontiers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knowles	10.76%	11.82%	8.75%
Research Frontiers	-344.56%	-168.54%	-85.08%

Insider and Institutional Ownership

96.3% of Knowles shares are held by institutional investors. Comparatively, 11.9% of Research Frontiers shares are held by institutional investors. 2.2% of Knowles shares are held by insiders. Comparatively, 6.5% of Research Frontiers shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Knowles beats Research Frontiers on 13 of the 15 factors compared between the two stocks.

About Knowles

Knowles Corporation offers capacitors, radio frequency (RF) filtering products, balanced armature speakers, micro-acoustic microphones, and audio solutions in Asia, the United States, Europe, other Americas, and internationally. It operates through three segments: Precision Devices (PD); Medtech & Specialty Audio (MSA); and Consumer MEMS Microphones (CMM). The PD segment designs and delivers film, electrolytic, and mica capacitor products for use in power supplies and medical implants; electromagnetic interference filters; and RF filtering solutions for use in satellite communications and radar systems for defense applications. The MSA segment designs and manufactures balanced armature speakers and microphones for the hearing health, audio, and True Wireless Stereo (TWS) markets. The CMM segment designs and manufactures micro-electro-mechanical systems (MEMS) microphones and audio solutions used in applications that serve the ear, mobile, TWS, Internet of Things, computing, and smartphones markets. The company serves the defense, medtech, electric vehicle, industrial, communications, and consumer electronics markets through original equipment manufacturers, their contract manufacturers, suppliers, sales representatives, and distributors. Knowles Corporation was founded in 1946 and is headquartered in Itasca, Illinois.

About Research Frontiers

Research Frontiers Incorporated engages in the development and marketing of technology and devices to control the flow of light worldwide. It develops and licenses suspended particle device (SPD-Smart) light-control technology to companies that manufacture and market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, and electronics to power end-products incorporating the film, as well as lamination services for and the end-products, such as windows, skylights, and sunroofs. The company's SPD-Smart light-control technology is used in various product applications, including windows, sunshades, skylights, and interior partitions for homes and buildings; automotive windows, sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels, and navigation systems; aircraft windows; museum display panels, and eyewear products; and flat panel displays for electronic products. It serves architectural, automotive, marine, and aerospace and appliance applications. The company was incorporated in 1965 and is headquartered in Woodbury, New York.