Financial Analysis: Rubicon Technology (NASDAQ:RBCN) vs. Surge Components (OTCMKTS:SPRS)

Valuation and Earnings

This table compares Surge Components and Rubicon Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surge Components	$36.28 million	0.35	$970,000.00	$0.09	25.00
Rubicon Technology	$2.00 million	1.65	-$10,000.00	$0.19	7.32

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Surge Components	1.61%	2.60%	1.99%
Rubicon Technology	-29.90%	-122.29%	-47.56%

Volatility and Risk

Surge Components has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Rubicon Technology shares are held by institutional investors. 53.0% of Surge Components shares are held by company insiders. Comparatively, 3.6% of Rubicon Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Surge Components beats Rubicon Technology on 8 of the 11 factors compared between the two stocks.

About Surge Components

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.

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.