Financial Analysis: RF Industries (RFIL) versus IEH (IEHC)

RF Industries (NASDAQ:RFIL) and IEH (OTCMKTS:IEHC) 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 earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for RF Industries and IEH, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RF Industries 0 0 0 0 N/A
IEH 0 0 0 0 N/A

Institutional and Insider Ownership

27.1% of RF Industries shares are held by institutional investors. Comparatively, 4.1% of IEH shares are held by institutional investors. 8.5% of RF Industries shares are held by company insiders. Comparatively, 48.0% of IEH shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

RF Industries has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, IEH has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Earnings & Valuation

This table compares RF Industries and IEH’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RF Industries $30.96 million 2.55 $380,000.00 N/A N/A
IEH $23.47 million 1.24 $2.56 million N/A N/A

IEH has lower revenue, but higher earnings than RF Industries.

Profitability

This table compares RF Industries and IEH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RF Industries 10.27% 23.75% 18.87%
IEH 16.35% 26.62% 22.88%

Dividends

RF Industries pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. IEH does not pay a dividend.

Summary

IEH beats RF Industries on 6 of the 11 factors compared between the two stocks.

About RF Industries

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States and internationally. The company's RF Connector and Cable Assembly division designs, manufactures, and distributes coaxial connectors and cable assemblies that are integrated with coaxial connectors. Its Cables Unlimited division manufactures and sells custom and standard cable assemblies, hybrid fiber optic power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment. The company's Comnet Telecom Supply division manufactures and sells fiber optics cables, distinctive cabling technologies, and custom patch cord assemblies, as well as other data center products. Its Rel-Tech Electronics division designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, medical, and military customers. The company sells its products through warehousing distributors and original equipment manufacturer (OEM) customers. It serves telecommunications carriers, wireless and network infrastructure carriers, data center and co-location companies, and OEMs. The company was formerly known as Celltronics, Inc. and changed its name to RF Industries, Ltd. in November 1990. RF Industries, Ltd. was founded in 1979 and is headquartered in San Diego, California.

About IEH

IEH Corporation designs, develops, and manufactures printed circuit board connectors and custom interconnects for high performance applications. Its products include are used as basic components of larger assemblies of finished goods. The company markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to government, military, aerospace, medical, automotive, industrial, test equipment, and commercial electronic markets. It markets its products in the United States, Canada, Israel, India, various Pacific Rim countries, South Korea, and the European Union. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1937 and is based in Brooklyn, New York.

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