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

Profitability

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

Net Margins Return on Equity Return on Assets
IEH 16.35% 26.62% 22.88%
RF Industries 10.27% 23.75% 18.87%

Earnings & Valuation

This table compares IEH and RF Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IEH $23.47 million 1.24 $2.56 million N/A N/A
RF Industries $30.96 million 2.55 $380,000.00 N/A N/A

IEH has higher earnings, but lower revenue than RF Industries.

Dividends

RF Industries pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. IEH does not pay a dividend.

Risk & Volatility

IEH has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, RF Industries has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Institutional & Insider Ownership

4.1% of IEH shares are owned by institutional investors. Comparatively, 27.1% of RF Industries shares are owned by institutional investors. 48.0% of IEH shares are owned by company insiders. Comparatively, 8.5% of RF Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for IEH and RF Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IEH 0 0 0 0 N/A
RF Industries 0 0 0 0 N/A

Summary

IEH beats RF Industries on 6 of the 11 factors compared between the two stocks.

About IEH

IEH Corporation designs, develops, and manufactures printed circuit board connectors and custom interconnects for high performance applications. Its products include are used as basic components of larger assemblies of finished goods. The company markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to government, military, aerospace, medical, automotive, industrial, test equipment, and commercial electronic markets. It markets its products in the United States, Canada, Israel, India, various Pacific Rim countries, South Korea, and the European Union. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1937 and is based in Brooklyn, New York.

About RF Industries

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States and internationally. The company's RF Connector and Cable Assembly division designs, manufactures, and distributes coaxial connectors and cable assemblies that are integrated with coaxial connectors. Its Cables Unlimited division manufactures and sells custom and standard cable assemblies, hybrid fiber optic power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment. The company's Comnet Telecom Supply division manufactures and sells fiber optics cables, distinctive cabling technologies, and custom patch cord assemblies, as well as other data center products. Its Rel-Tech Electronics division designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, medical, and military customers. The company sells its products through warehousing distributors and original equipment manufacturer (OEM) customers. It serves telecommunications carriers, wireless and network infrastructure carriers, data center and co-location companies, and OEMs. The company was formerly known as Celltronics, Inc. and changed its name to RF Industries, Ltd. in November 1990. RF Industries, Ltd. was founded in 1979 and is headquartered in San Diego, California.

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