RF Industries (NASDAQ:RFIL) vs. AAC Technologies (OTCMKTS:AACAY) Critical Contrast

AAC Technologies (OTCMKTS:AACAY) and RF Industries (NASDAQ:RFIL) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Risk & Volatility

AAC Technologies has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, RF Industries has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Valuation and Earnings

This table compares AAC Technologies and RF Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAC Technologies	$4.43 billion	1.38	$349.42 million	N/A	N/A
RF Industries	$82.14 million	1.69	$80,000.00	$0.14	91.50

AAC Technologies has higher revenue and earnings than RF Industries.

Dividends

AAC Technologies pays an annual dividend of $0.04 per share and has a dividend yield of 0.8%. RF Industries pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. RF Industries pays out 57.1% of its earnings in the form of a dividend.

Profitability

This table compares AAC Technologies and RF Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AAC Technologies	N/A	N/A	N/A
RF Industries	1.70%	12.79%	6.32%

Insider & Institutional Ownership

23.5% of RF Industries shares are held by institutional investors. 20.4% of RF Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for AAC Technologies and RF Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAC Technologies	0	1	0	0	2.00
RF Industries	0	2	0	1	2.67

RF Industries has a consensus target price of $18.00, suggesting a potential upside of 40.52%. Given RF Industries’ stronger consensus rating and higher probable upside, analysts clearly believe RF Industries is more favorable than AAC Technologies.

Summary

RF Industries beats AAC Technologies on 9 of the 14 factors compared between the two stocks.

About AAC Technologies

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. The company operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, Sensor and Semiconductor Products, and other products segments. It provides acoustics products for smartphones, laptops, mid-range tablets, and smart glasses; and manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, game controllers, and virtual reality/augmented reality controllers. The company also offers precision mechanics comprising metal casing products; optical lenses, camera modules, and optical actuators, as well as voice coil motor products; and micro electro-mechanical systems (MEMS) and ASIC chips design, packaging, and testing services for consumer electronics, automotive, smart wearables, robotics, IoT, and other sectors. In addition, it provides research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services, as well as engages in investment activities. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

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.