Analyzing RF Industries (NASDAQ:RFIL) and Insight Enterprises (NASDAQ:NSIT)

Insight Enterprises (NASDAQ:NSIT) and RF Industries (NASDAQ:RFIL) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Valuation & Earnings

This table compares Insight Enterprises and RF Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insight Enterprises	$8.25 billion	0.57	$157.35 million	$6.83	23.49
RF Industries	$80.59 million	0.95	$80,000.00	$0.22	31.95

Insight Enterprises has higher revenue and earnings than RF Industries. Insight Enterprises is trading at a lower price-to-earnings ratio than RF Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Insight Enterprises and RF Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insight Enterprises	0	4	3	0	2.43
RF Industries	0	2	2	0	2.50

Insight Enterprises currently has a consensus target price of $147.50, suggesting a potential downside of 8.08%. RF Industries has a consensus target price of $14.50, suggesting a potential upside of 106.26%. Given RF Industries’ stronger consensus rating and higher possible upside, analysts clearly believe RF Industries is more favorable than Insight Enterprises.

Profitability

This table compares Insight Enterprises and RF Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insight Enterprises	2.45%	22.70%	3.71%
RF Industries	2.83%	15.32%	7.80%

Institutional & Insider Ownership

23.5% of RF Industries shares are owned by institutional investors. 1.2% of Insight Enterprises shares are owned by company insiders. Comparatively, 20.4% of RF Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Insight Enterprises has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, RF Industries has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Summary

RF Industries beats Insight Enterprises on 9 of the 14 factors compared between the two stocks.

About Insight Enterprises

Insight Enterprises, Inc., together with its subsidiaries, provides information technology, hardware, software, and services in the United States and internationally. The company offers modern platforms/infrastructure that manages and supports cloud and data platforms, modern networks, and edge technologies; cybersecurity solutions automates and connects modern platform securely; data and artificial intelligence modernizes data platforms and architectures, and build data analytics and AI solutions; modern workplace and apps; and intelligent edge solutions that gathers and utilizes data for real-time decision making. It also provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services contracts; and cloud/software-as-a-service subscription products. In addition, the company designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses. It serves construction, esports, financial services, health care and life sciences, manufacturing, retail and restaurant, service providers, small to medium business, and travel and tourism industries. Insight Enterprises, Inc., was founded in 1988 and is headquartered in Chandler, Arizona.

About RF Industries

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States, Canada, Italy, Mexico, and internationally. The company operates through two segments, RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly. The company designs, manufactures, and distributes various coaxial connectors and cable assemblies that are integrated with coaxial connectors; custom copper and fiber cable assemblies, complex hybrid fiber optic and power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment; energy-efficient cooling systems for wireless base stations and remote equipment shelters; and custom-designed pole-ready 5G small cell integrated enclosures. It also designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, medical, and military customers; connectivity solutions to telecommunications and data communications distributors; thermal control systems; and radio frequency and microwave distribution system products, such as dividers, directional couplers, and filters. The company sells its products through warehousing distributors and in-house marketing and sales team. It serves telecommunications carriers and equipment manufacturers, wireless and network infrastructure carriers, and original equipment manufacturers. The company was formerly known as Celltronics, Inc. and changed its name RF Industries, Ltd. in November 1990. RF Industries, Ltd. was incorporated in 1979 and is headquartered in San Diego, California.