Perceptron (NASDAQ: PRCP) and Rudolph Technologies (NYSE:RTEC) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Earnings & Valuation

This table compares Perceptron and Rudolph Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Perceptron $77.95 million 0.96 $5.79 million ($0.01) -796.00
Rudolph Technologies $243.81 million 3.39 $47.48 million $1.00 26.20

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

Insider & Institutional Ownership

63.1% of Perceptron shares are held by institutional investors. Comparatively, 91.9% of Rudolph Technologies shares are held by institutional investors. 12.0% of Perceptron shares are held by insiders. Comparatively, 2.0% of Rudolph Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Perceptron and Rudolph Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perceptron -0.22% 1.00% 0.58%
Rudolph Technologies 13.02% 10.36% 8.87%

Risk and Volatility

Perceptron has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Rudolph Technologies has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Perceptron and Rudolph Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perceptron 0 0 1 0 3.00
Rudolph Technologies 1 0 4 0 2.60

Perceptron presently has a consensus target price of $9.00, indicating a potential upside of 13.07%. Rudolph Technologies has a consensus target price of $27.80, indicating a potential upside of 6.11%. Given Perceptron’s stronger consensus rating and higher probable upside, equities analysts clearly believe Perceptron is more favorable than Rudolph Technologies.

Summary

Rudolph Technologies beats Perceptron on 10 of the 13 factors compared between the two stocks.

About Perceptron

Perceptron, Inc. develops, produces and sells a range of automated industrial metrology products and solutions to manufacturing organizations for dimensional gauging, dimensional inspection and three-dimensional (3D) scanning. The Company’s products include 3D machine vision solutions, robot guidance, coordinate measuring machines (CMMs), laser scanning and advanced analysis software. The Company’s products are categorized as In-Line, Near-Line and Off-Line Measurement Solutions (Measurement Solutions); 3D Scanning Solutions, and Value Added Services. Its In-Line and Near-Line measurement solutions include AutoGauge, AutoFit, AutoScan, AutoGuide and Helix. Its Off-Line measurement solutions include Coord3 and TouchDMIS. Its 3D Scanning Solutions include ScanWorks, ScanR and WheelWorks. Its Value Added Services include training, field service, calibration, launch support services, maintenance agreements and repairs. The Company operates in the Americas, Europe and Asia.

About Rudolph Technologies

Rudolph Technologies, Inc. (Rudolph) is engaged in the design, development, manufacture and support of process control defect inspection and metrology, advanced packaging lithography, and data analysis systems and software used by microelectronics device manufacturers. The Company provides process and yield management solutions used in both wafer processing and final manufacturing through a family of standalone systems for macro-defect inspection, lithography, probe card test and analysis, and transparent and opaque thin film measurements. It offers Process Control Business, Lithography Business and Integrated Software Solutions. Rudolph markets and sells products to logic, memory, data storage, flat panel, application-specific integrated circuit (ASIC) device and packaging manufacturers. Its products include AMX 6000 Series, Explorer Inspection Platform, MetaPULSE System, Wafer Scanner Inspection System, GateWay Software, Yield Optimizer Software and Process Sentinel Software.

Receive News & Ratings for Perceptron Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Perceptron Inc. and related companies with MarketBeat.com's FREE daily email newsletter.