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

Volatility & Risk

Rubicon Technology has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Texas Instruments has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Earnings & Valuation

This table compares Rubicon Technology and Texas Instruments’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rubicon Technology $5.04 million 4.43 -$17.85 million N/A N/A
Texas Instruments $15.78 billion 6.38 $5.58 billion $5.42 19.33

Texas Instruments has higher revenue and earnings than Rubicon Technology.

Dividends

Texas Instruments pays an annual dividend of $3.08 per share and has a dividend yield of 2.9%. Rubicon Technology does not pay a dividend. Texas Instruments pays out 56.8% of its earnings in the form of a dividend. Texas Instruments has raised its dividend for 15 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Rubicon Technology and Texas Instruments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rubicon Technology 0 0 0 0 N/A
Texas Instruments 1 12 11 0 2.42

Texas Instruments has a consensus price target of $107.68, suggesting a potential upside of 2.78%. Given Texas Instruments’ higher probable upside, analysts plainly believe Texas Instruments is more favorable than Rubicon Technology.

Insider and Institutional Ownership

36.5% of Rubicon Technology shares are owned by institutional investors. Comparatively, 86.9% of Texas Instruments shares are owned by institutional investors. 12.9% of Rubicon Technology shares are owned by insiders. Comparatively, 0.8% of Texas Instruments 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.

Profitability

This table compares Rubicon Technology and Texas Instruments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rubicon Technology -125.00% -21.33% -20.56%
Texas Instruments 35.35% 53.05% 30.16%

Summary

Texas Instruments beats Rubicon Technology on 12 of the 14 factors compared between the two stocks.

About Rubicon Technology

Rubicon Technology, Inc. engages in the provision of monocrystalline sapphire for applications in optical and industrial systems. It designs, assembles, and maintains its own proprietary crystal growth furnaces under the ES2 Kyropoulos and LANCE (Large Area Net-shape Crystal Extraction) brands. The company was founded on February 7, 2001 and is headquartered in Bensenville, IL.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery management solutions, portable components, power supply controls, point-of-load products, switches and interfaces, integrated protection devices, high-voltage products, and mobile lighting and display products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in amplifier, data converter, interface product, motor drive, clock, and sensing product end-markets; and integrated analog and standard products, which are primarily for sale into personal electronics, industrial, and automotive markets. The Embedded Processing segment offers connected microcontrollers, such as microcontrollers, microcontrollers with integrated wireless capabilities, and stand-alone wireless connectivity solutions that are used in electronic equipment to sense, connect, log, and transfer data; and digital signal and applications processors for mathematical computations and specific computing activity. This segment offers products for use in various markets, principally industrial and automotive. The company also provides DLP products, primarily for use in projectors to create high-definition images; calculators; and application-specific integrated circuits. Texas Instruments Incorporated markets and sells its semiconductor products through direct sales and distributors, as well as online. The company was founded in 1930 and is headquartered in Dallas, Texas.

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