CUI Global (NASDAQ:CUI) and Richardson Electronics (NASDAQ:RELL) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

CUI Global has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Richardson Electronics has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Profitability

This table compares CUI Global and Richardson Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CUI Global -16.30% -16.81% -10.89%
Richardson Electronics 2.56% 2.12% 1.76%

Dividends

Richardson Electronics pays an annual dividend of $0.24 per share and has a dividend yield of 3.4%. CUI Global does not pay a dividend.

Valuation and Earnings

This table compares CUI Global and Richardson Electronics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CUI Global $83.28 million 0.56 -$12.58 million ($0.35) -4.69
Richardson Electronics $163.21 million 0.56 $3.82 million N/A N/A

Richardson Electronics has higher revenue and earnings than CUI Global.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CUI Global and Richardson Electronics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CUI Global 0 0 1 0 3.00
Richardson Electronics 0 0 0 0 N/A

CUI Global currently has a consensus price target of $56.00, indicating a potential upside of 3,314.63%. Given CUI Global’s higher probable upside, research analysts clearly believe CUI Global is more favorable than Richardson Electronics.

Insider & Institutional Ownership

54.4% of CUI Global shares are held by institutional investors. Comparatively, 43.5% of Richardson Electronics shares are held by institutional investors. 4.4% of CUI Global shares are held by company insiders. Comparatively, 35.6% of Richardson Electronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Richardson Electronics beats CUI Global on 8 of the 12 factors compared between the two stocks.

CUI Global Company Profile

CUI Global, Inc., through its subsidiaries, engages in the acquisition, development, and commercialization of power and electromechanical components worldwide. The company operates in two segments, Power and Electromechanical, and Energy. The Power and Electromechanical segment offers power solutions that consists of external and embedded ac-dc power supplies, dc-dc converters, and intelligent control of energy products; components, including connectors, speakers, and buzzers; and control solutions comprising encoders and sensors, which addresses power and related accessories to consumer electronics, medical, and defense industries. The Energy segment provides natural gas infrastructure and advanced technologies, including metering, odorization, remote telemetry units, and a range of personalized gas engineering solutions to the gas utilities, power generation, emissions, manufacturing, and automotive industries. CUI Global, Inc. was founded in 1998 and is based in Tualatin, Oregon.

Richardson Electronics Company Profile

Richardson Electronics, Ltd. engages in power and microwave technologies, customized display solutions, and healthcare equipment businesses in North America, the Asia Pacific, Europe, and Latin America. The company's Power and Microwave Technologies Group segment provides engineered solutions, power grid and microwave tubes, and related consumables; high value flat panel detector solutions, replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions, as well as power conversion and RF and microwave components for broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology applications. Its products are used to control, switch, or amplify electrical power signals, as well as are used as display devices in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. This segment also offers technical services for microwave and industrial equipment. The company's Canvys segment provides custom display solutions, such as touch screens, protective panels, custom enclosures, specialized cabinet finishes, application specific software packages, and certification services to corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer markets. Its Healthcare segment manufactures, refurbishes, and distributes diagnostic imaging replacement parts, including CT and MRI systems and tubes, hydrogen thyratrons, klystrons, and magnetrons; flat panel detector upgrades; and additional replacement solutions. This segment serves hospitals, medical centers, asset management companies, independent service organizations, and multi-vendor service providers. The company was founded in 1947 and is headquartered in LaFox, Illinois.

Receive News & Ratings for CUI Global Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CUI Global and related companies with MarketBeat.com's FREE daily email newsletter.