Head-To-Head Review: Research Frontiers (NASDAQ:REFR) and Key Tronic (NASDAQ:KTCC)

Research Frontiers (NASDAQ:REFR) and Key Tronic (NASDAQ:KTCC) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Earnings and Valuation

This table compares Research Frontiers and Key Tronic”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Research Frontiers	$1.34 million	25.36	-$1.31 million	($0.06)	-16.83
Key Tronic	$467.87 million	0.06	-$8.32 million	($1.42)	-1.97

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

Analyst Recommendations

This is a breakdown of current recommendations for Research Frontiers and Key Tronic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Research Frontiers	1	0	0	0	1.00
Key Tronic	1	0	0	0	1.00

Institutional & Insider Ownership

11.9% of Research Frontiers shares are owned by institutional investors. Comparatively, 40.7% of Key Tronic shares are owned by institutional investors. 6.5% of Research Frontiers shares are owned by insiders. Comparatively, 7.9% of Key Tronic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Research Frontiers and Key Tronic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Research Frontiers	-153.95%	-90.72%	-54.95%
Key Tronic	-3.68%	-5.08%	-1.80%

Volatility and Risk

Research Frontiers has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Key Tronic has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Summary

Key Tronic beats Research Frontiers on 8 of the 11 factors compared between the two stocks.

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.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.