Itron (NASDAQ:ITRI – Get Free Report) and Richardson Electronics (NASDAQ:RELL – Get Free Report) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.
Valuation and Earnings
This table compares Itron and Richardson Electronics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Itron | $2.37 billion | 1.87 | $301.05 million | $5.99 | 16.92 |
| Richardson Electronics | $228.56 million | 1.27 | $6.38 million | $0.44 | 45.44 |
Profitability
This table compares Itron and Richardson Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Itron | 11.90% | 19.26% | 8.40% |
| Richardson Electronics | 2.79% | 3.57% | 2.84% |
Volatility and Risk
Itron has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Richardson Electronics has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Itron and Richardson Electronics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Itron | 1 | 4 | 8 | 0 | 2.54 |
| Richardson Electronics | 0 | 1 | 1 | 1 | 3.00 |
Itron presently has a consensus price target of $131.33, suggesting a potential upside of 29.59%. Richardson Electronics has a consensus price target of $24.00, suggesting a potential upside of 20.03%. Given Itron’s higher probable upside, equities analysts clearly believe Itron is more favorable than Richardson Electronics.
Institutional and Insider Ownership
96.2% of Itron shares are owned by institutional investors. Comparatively, 71.9% of Richardson Electronics shares are owned by institutional investors. 1.8% of Itron shares are owned by company insiders. Comparatively, 33.4% of Richardson Electronics 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.
Summary
Itron beats Richardson Electronics on 11 of the 15 factors compared between the two stocks.
About Itron
Itron, Inc., a technology, solutions, and service company, provides end-to-end solutions that help manage energy, water, and smart city operations worldwide. It operates in three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing, such as standard gas, electricity, water, and communicating meters, as well as heat and allocation products. The Networked Solutions segment provides communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; and associated heat-end management and application software for acquiring and transporting application-specific data. This segment also offers industrial internet of things solutions. Including automated meter reading; advanced metering infrastructure for electricity, water, and gas; distributed energy resource management; smart grid and distribution automation; smart street lighting; and leak detection and applications for gas and water systems. The Outcomes segment provides value-added, enhanced software and services, artificial intelligence, and machine learning for managing, organizing, analyzing, and interpreting data to enhance decision making, maximize operational profitability, resource efficiency, grid analytics, and deliver results for consumers, utilities, and smart cities. In addition, it offers implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or customer-specific warranties. The company offers its products and services under the Itron brand. It serves utility and smart city customers, and municipalities through its sales force, distributors, agents, partners, and meter manufacturer representatives. Itron, Inc. was incorporated in 1977 and is headquartered in Liberty Lake, Washington.
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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