Head-To-Head Survey: Rubicon Technology (NASDAQ:RBCN) versus Avnet (NASDAQ:AVT)

Avnet (NASDAQ:AVT) and Rubicon Technology (NASDAQ:RBCN) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Avnet and Rubicon Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avnet	$23.03 billion	0.20	$498.70 million	$3.82	14.18
Rubicon Technology	$2.00 million	2.08	-$10,000.00	$0.19	9.21

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

Insider & Institutional Ownership

95.8% of Avnet shares are held by institutional investors. Comparatively, 0.0% of Rubicon Technology shares are held by institutional investors. 1.5% of Avnet shares are held by insiders. Comparatively, 3.6% of Rubicon Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Avnet and Rubicon Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avnet	1.51%	8.46%	3.37%
Rubicon Technology	-29.90%	-122.29%	-47.56%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Avnet and Rubicon Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avnet	2	2	0	0	1.50
Rubicon Technology	0	0	0	0	0.00

Avnet presently has a consensus target price of $48.50, suggesting a potential downside of 10.45%. Given Avnet’s stronger consensus rating and higher possible upside, equities analysts clearly believe Avnet is more favorable than Rubicon Technology.

Volatility & Risk

Avnet has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Summary

Avnet beats Rubicon Technology on 11 of the 13 factors compared between the two stocks.

About Avnet

Avnet, Inc., distributes electronic component technology. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated components from electronic component manufacturers. It also offers design chain support that provides engineers with technical design solutions; engineering and technical resources to support product design, bill of materials development, and technical education and training; and supply chain solutions that provide support and logistical services to original equipment manufacturers, electronic manufacturing service providers, and electronic component manufacturers. In addition, this segment provides embedded solutions, such as technical design, integration, and assembly of embedded products, systems, and solutions primarily for industrial applications, as well as embedded display solutions comprising touch and passive displays; and develops and manufactures standard board and industrial subsystems, and application-specific devices that enable it to produce systems tailored to specific customer requirements. This segment serves various markets, such as automotive, medical, defense, aerospace, telecommunications, industrial, and digital editing. The Farnell segment distributes kits, tools, and electronic and industrial automation components, as well as test and measurement products to engineers and entrepreneurs. It has operations in the Americas, Europe, the Middle East, Africa, and Asia. Avnet, Inc. was founded in 1921 and is headquartered in Phoenix, Arizona.

About Rubicon Technology

Rubicon Technology, Inc. provides monocrystalline sapphire for applications in optical and industrial systems in North America, Asia, and internationally. The company offers optical and industrial sapphire products in various shapes and sizes, including sheets, rods, tubes, core, ingots, and prisms for a range of end markets comprising defense and aerospace, specialty lighting, instrumentation, sensors and detectors, semiconductor process equipment, electronic substrates, medical, and laser applications. It serves defense subcontractors, industrial manufacturers, fabricators, and resellers. The company was incorporated in 2001 and is based in Bensenville, Illinois.