RealD (NYSE: RLD) and Steelcase (NYSE:SCS) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitabiliy, dividends, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for RealD and Steelcase, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealD 0 0 0 0 N/A
Steelcase 0 1 1 0 2.50

Steelcase has a consensus price target of $16.00, suggesting a potential upside of 16.36%. Given Steelcase’s higher probable upside, analysts clearly believe Steelcase is more favorable than RealD.

Valuation & Earnings

This table compares RealD and Steelcase’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RealD N/A N/A N/A N/A N/A
Steelcase $3.05 billion 0.53 $261.10 million $1.01 13.61

Steelcase has higher revenue and earnings than RealD.

Insider and Institutional Ownership

65.6% of Steelcase shares are owned by institutional investors. 18.9% of Steelcase shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares RealD and Steelcase’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RealD -8.50% -11.24% -6.77%
Steelcase 4.04% 16.37% 7.17%

Dividends

Steelcase pays an annual dividend of $0.51 per share and has a dividend yield of 3.7%. RealD does not pay a dividend. Steelcase pays out 50.5% of its earnings in the form of a dividend. Steelcase has increased its dividend for 6 consecutive years.

Summary

Steelcase beats RealD on 10 of the 11 factors compared between the two stocks.

RealD Company Profile

RealD Inc. (RealD) is a licensor of three dimensional (3D) and other visual technologies. The Company’s property portfolio is used in applications that enable a viewing experience in the theater, the home and elsewhere. The Company licenses its RealD Cinema Systems to motion picture exhibitors that show 3D motion pictures and alternative 3D content. The Company operates in three segments: cinema, consumer electronics and professional. It also provides certain of its technologies to consumer electronics manufacturers and content distributors. It licenses 3D technologies for use in professional and other non-theatrical applications. The Company’s visual technology is used in different applications and businesses, including entertainment, consumer electronics, education, aerospace, defense and healthcare. As of March 31, 2015, the Company’s RealD Cinema Systems were deployed on approximately 26,700 theater screens in 70 countries.

Steelcase Company Profile

Steelcase Inc. provides an integrated portfolio of furniture settings, user-centered technologies and interior architectural products. The Company’s segments include Americas, EMEA and Other Category. The Company’s furniture portfolio includes panel-based and freestanding furniture systems and complementary products, such as storage, tables and ergonomic worktools. Its seating products include task chairs, which are ergonomic seating that can be used in collaborative or casual settings and specialty seating for specific vertical markets, such as healthcare and education. Its technology solutions support group collaboration by integrating furniture and technology. Its interior architectural products include full and partial height walls and doors. It also offers services, which include workplace strategy consulting, lease origination services, furniture and asset management and hosted spaces. Its family of brands includes Steelcase, Coalesse, Designtex, PolyVision and Turnstone.

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