Critical Comparison: Research Frontiers (NASDAQ:REFR) and Casio Computer (OTCMKTS:CSIOY)

Casio Computer (OTCMKTS:CSIOY) and Research Frontiers (NASDAQ:REFR) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Risk and Volatility

Casio Computer has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Insider and Institutional Ownership

11.9% of Research Frontiers shares are owned by institutional investors. 6.5% of Research Frontiers shares are owned by 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.

Profitability

This table compares Casio Computer and Research Frontiers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Casio Computer	6.59%	7.74%	5.18%
Research Frontiers	-343.47%	-159.20%	-84.93%

Valuation and Earnings

This table compares Casio Computer and Research Frontiers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Casio Computer	$1.84 billion	1.39	$121.08 million	$5.31	20.50
Research Frontiers	$1.12 million	24.44	-$2.05 million	($0.07)	-11.21

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Casio Computer and Research Frontiers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Casio Computer	0	0	0	0	0.00
Research Frontiers	1	0	0	0	1.00

Summary

Casio Computer beats Research Frontiers on 7 of the 12 factors compared between the two stocks.

About Casio Computer

Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.

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.