Dragonfly Energy (NASDAQ:DFLI) & Research Frontiers (NASDAQ:REFR) Critical Review

Research Frontiers (NASDAQ:REFR) and Dragonfly Energy (NASDAQ:DFLI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Research Frontiers and Dragonfly Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Research Frontiers	1	0	0	0	1.00
Dragonfly Energy	2	0	1	1	2.25

Dragonfly Energy has a consensus target price of $3.25, indicating a potential upside of 92.31%. Given Dragonfly Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Dragonfly Energy is more favorable than Research Frontiers.

Profitability

This table compares Research Frontiers and Dragonfly Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Research Frontiers	-343.47%	-159.20%	-84.93%
Dragonfly Energy	-126.90%	N/A	-49.27%

Earnings and Valuation

This table compares Research Frontiers and Dragonfly Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Research Frontiers	$1.12 million	17.16	-$2.05 million	($0.07)	-7.88
Dragonfly Energy	$58.63 million	0.37	-$69.94 million	($23.36)	-0.07

Research Frontiers has higher earnings, but lower revenue than Dragonfly Energy. Research Frontiers is trading at a lower price-to-earnings ratio than Dragonfly Energy, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Research Frontiers has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Dragonfly Energy has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Insider and Institutional Ownership

11.9% of Research Frontiers shares are held by institutional investors. Comparatively, 8.2% of Dragonfly Energy shares are held by institutional investors. 6.5% of Research Frontiers shares are held by company insiders. Comparatively, 3.1% of Dragonfly Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Dragonfly Energy beats Research Frontiers on 9 of the 15 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 Dragonfly Energy

Dragonfly Energy Holdings Corp. engages in the manufacturing and sale of deep cycle lithium-ion batteries for recreational vehicles, marine vessels, solar and off-grid residence industries, and industrial and energy storage markets. The company provides lithium power systems comprising solar panels, chargers and inverters, system monitoring, alternator regulators, accessories, and others. It also offers battery management systems for monitoring and controlling of battery systems and to protect battery cells from damage in various scenarios. The company provides its products under the Dragonfly Energy, Battle Born, and Wakespeed brand names. Dragonfly Energy Holdings Corp. is headquartered in Reno, Nevada.