Reliability (OTCMKTS:RLBY) and Frequency Electronics (NASDAQ:FEIM) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Reliability and Frequency Electronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reliability 0 0 0 0 N/A
Frequency Electronics 0 0 0 0 N/A

Profitability

This table compares Reliability and Frequency Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reliability N/A N/A -293.01%
Frequency Electronics -63.43% -20.58% -15.79%

Volatility & Risk

Reliability has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Frequency Electronics has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares Reliability and Frequency Electronics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Reliability N/A N/A -$20,000.00 N/A N/A
Frequency Electronics $39.41 million 2.40 -$23.77 million N/A N/A

Reliability has higher earnings, but lower revenue than Frequency Electronics.

Institutional and Insider Ownership

0.0% of Reliability shares are owned by institutional investors. Comparatively, 42.5% of Frequency Electronics shares are owned by institutional investors. 10.1% of Reliability shares are owned by insiders. Comparatively, 41.7% of Frequency Electronics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Frequency Electronics beats Reliability on 5 of the 8 factors compared between the two stocks.

Reliability Company Profile

Reliability Incorporated does not have significant operations. It intends to acquire, or identify a merger partner or other business combination. Previously, the company was involved in the design, manufacture, marketing, and support of high performance equipment used to test and condition integrated circuits. Reliability Incorporated was incorporated in 1953 and is based in Old Greenwich, Connecticut.

Frequency Electronics Company Profile

Frequency Electronics, Inc. designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations; and other components and systems for the United States military. The FEI-Zyfer segment designs, develops, and manufactures products for precision time, and frequency generation and synchronization primarily incorporating global positioning system technologies into communications systems, computer networks, test equipment, and military command and control terminals for ground and satellite link applications. The company's products are used in commercial, government satellite payload systems, secure communications, command, control, communication, computer, intelligence, security and reconnaissance, counter measures, and electronic warfare applications for the United States government on land, sea, and air-borne platforms. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia. Frequency Electronics, Inc. was founded in 1961 and is headquartered in Mitchel Field, New York.

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