Research Frontiers (NASDAQ:REFR – Get Free Report) and Nortech Systems (NASDAQ:NSYS – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Profitability
This table compares Research Frontiers and Nortech Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Research Frontiers | -344.56% | -168.54% | -85.08% |
| Nortech Systems | 0.83% | 3.01% | 1.36% |
Risk & Volatility
Research Frontiers has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Nortech Systems has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Research Frontiers | $1.12 million | 22.68 | -$2.05 million | ($0.07) | -10.41 |
| Nortech Systems | $118.36 million | 0.28 | -$250,000.00 | $0.36 | 32.17 |
Nortech Systems has higher revenue and earnings than Research Frontiers. Research Frontiers is trading at a lower price-to-earnings ratio than Nortech Systems, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
11.9% of Research Frontiers shares are owned by institutional investors. Comparatively, 3.0% of Nortech Systems shares are owned by institutional investors. 6.5% of Research Frontiers shares are owned by insiders. Comparatively, 12.4% of Nortech Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Research Frontiers and Nortech Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Research Frontiers | 1 | 0 | 0 | 0 | 1.00 |
| Nortech Systems | 0 | 1 | 0 | 0 | 2.00 |
Summary
Nortech Systems beats Research Frontiers on 9 of the 12 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 Nortech Systems
Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.
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