Arrow Electronics (NYSE: ARW) and Rubicon Technology (NASDAQ:RBCN) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Arrow Electronics 2.00% 13.63% 4.48%
Rubicon Technology -409.18% -78.15% -74.16%

Volatility and Risk

Arrow Electronics has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares Arrow Electronics and Rubicon Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arrow Electronics $23.83 billion 0.29 $522.75 million $5.68 13.79
Rubicon Technology $19.63 million 1.18 -$62.87 million ($13.02) -0.65

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

Analyst Recommendations

This is a summary of current ratings and price targets for Arrow Electronics and Rubicon Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arrow Electronics 0 2 1 0 2.33
Rubicon Technology 0 0 0 0 N/A

Arrow Electronics currently has a consensus price target of $80.33, suggesting a potential upside of 2.60%. Given Arrow Electronics’ higher probable upside, equities analysts clearly believe Arrow Electronics is more favorable than Rubicon Technology.

Institutional & Insider Ownership

92.7% of Arrow Electronics shares are owned by institutional investors. Comparatively, 32.2% of Rubicon Technology shares are owned by institutional investors. 1.2% of Arrow Electronics shares are owned by insiders. Comparatively, 12.1% of Rubicon Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Arrow Electronics beats Rubicon Technology on 10 of the 12 factors compared between the two stocks.

Arrow Electronics Company Profile

Arrow Electronics, Inc. is a provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The Company has a portfolio of product offerings available from various electronic components and enterprise computing solutions suppliers. The Company’s segments include the global components business; the global enterprise computing solutions (ECS) business, and corporate business segment. It distributes electronic components to original equipment manufacturers and contract manufacturers through its global components business segment. Through global ECS business segment, it provides enterprise computing solutions to value-added resellers. The Global components segment markets and distributes electronic components and provides a range of value-added capabilities. Global ECS’ portfolio of computing solutions includes datacenter, cloud, security, and analytics solutions.

Rubicon Technology Company Profile

Rubicon Technology, Inc. is a vertically integrated, electronic materials provider specializing in monocrystalline sapphire for applications in light-emitting diodes (LEDs), optical systems and specialty electronic devices. The Company’s product lines include sapphire cores; four and six-inch sapphire wafers; four, six, and eight-inch patterned sapphire substrate (PSS) wafers, and optical sapphire components. Its sapphire is also used as an exterior component in mobile devices, specifically camera lens covers, dual flashes and home buttons on certain newer model smartphones and as the crystal covering the faces of certain smart watches. In addition, some consumer electronics original equipment manufacturers (OEMs) use sapphire faceplates for smartphones. For the LED market, it sells 2 to 6-inch material in core form and four, six and eight-inch material in polished and PSS wafer form. Its principal customers are semiconductor device manufacturers and wafer polishing companies.

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