Rubicon Technology (NASDAQ: RBCN) and Chipmos Technologies (NASDAQ:IMOS) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitabiliy.

Earnings and Valuation

This table compares Rubicon Technology and Chipmos Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rubicon Technology $16.61 million 1.46 -$25.21 million ($22.90) -0.39
Chipmos Technologies $614.21 million 29.04 $187.32 million $2.29 9.09

Chipmos Technologies has higher revenue and earnings than Rubicon Technology. Rubicon Technology is trading at a lower price-to-earnings ratio than Chipmos Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rubicon Technology and Chipmos Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rubicon Technology -364.92% -63.12% -59.42%
Chipmos Technologies 17.63% 8.46% 4.56%

Dividends

Chipmos Technologies pays an annual dividend of $1.63 per share and has a dividend yield of 7.8%. Rubicon Technology does not pay a dividend. Chipmos Technologies pays out 71.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rubicon Technology and Chipmos Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rubicon Technology 0 0 0 0 N/A
Chipmos Technologies 0 0 1 0 3.00

Chipmos Technologies has a consensus target price of $22.00, suggesting a potential upside of 5.67%. Given Chipmos Technologies’ higher probable upside, analysts plainly believe Chipmos Technologies is more favorable than Rubicon Technology.

Volatility and Risk

Rubicon Technology has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Chipmos Technologies has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Institutional & Insider Ownership

23.6% of Chipmos Technologies shares are held by institutional investors. 12.1% of Rubicon Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Chipmos Technologies beats Rubicon Technology on 11 of the 14 factors compared between the two stocks.

About Rubicon Technology

Rubicon Technology, Inc. is a vertically integrated, electronic materials provider specializing in monocrystalline sapphire for applications in light-emitting diodes (LEDs), optical systems and specialty electronic devices. The Company’s product lines include sapphire cores; four and six-inch sapphire wafers; four, six, and eight-inch patterned sapphire substrate (PSS) wafers, and optical sapphire components. Its sapphire is also used as an exterior component in mobile devices, specifically camera lens covers, dual flashes and home buttons on certain newer model smartphones and as the crystal covering the faces of certain smart watches. In addition, some consumer electronics original equipment manufacturers (OEMs) use sapphire faceplates for smartphones. For the LED market, it sells 2 to 6-inch material in core form and four, six and eight-inch material in polished and PSS wafer form. Its principal customers are semiconductor device manufacturers and wafer polishing companies.

About Chipmos Technologies

ChipMOS TECHNOLOGIES (Bermuda) LTD. is a holding company. The Company is a provider of semiconductor assembly and test services. The Company provides testing and assembly services for liquid crystal display (LCD) and other flat-panel display driver semiconductors in Taiwan, and for memory and logic/mixed-signal products in Taiwan and Mainland China. The Company’s business segments are testing services for memory and logic/mixed-signal semiconductors; assembly services for memory and logic/mixed-signal semiconductors; LCD and other flat-panel display driver semiconductor testing and assembly services, and bumping services for memory, logic/mixed-signal and LCD and other flat-panel display driver semiconductors. The Company provides testing services for a range of memory semiconductors, such as Static Random Access Memory (SRAM), Dynamic Random Access Memory (DRAM) and Flash memory. Its production facilities are located in Hsinchu and Tainan, Taiwan and Shanghai, Mainland China.

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