Analyzing Patriot Scientific (PTSC) & Research Frontiers (REFR)

Patriot Scientific (OTCMKTS:PTSC) and Research Frontiers (NASDAQ:REFR) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Insider and Institutional Ownership

6.2% of Research Frontiers shares are held by institutional investors. 1.0% of Patriot Scientific shares are held by insiders. Comparatively, 9.5% of Research Frontiers shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Patriot Scientific has a beta of -0.41, meaning that its share price is 141% less volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Valuation & Earnings

This table compares Patriot Scientific and Research Frontiers’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Patriot Scientific N/A N/A -$1.20 million N/A N/A
Research Frontiers $1.51 million 28.39 -$2.41 million ($0.10) -15.50

Patriot Scientific has higher earnings, but lower revenue than Research Frontiers.

Analyst Ratings

This is a summary of current recommendations for Patriot Scientific and Research Frontiers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patriot Scientific 0 0 0 0 N/A
Research Frontiers 0 0 1 0 3.00

Research Frontiers has a consensus target price of $3.00, indicating a potential upside of 93.55%. Given Research Frontiers’ higher possible upside, analysts clearly believe Research Frontiers is more favorable than Patriot Scientific.

Profitability

This table compares Patriot Scientific and Research Frontiers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patriot Scientific N/A -44.37% -43.11%
Research Frontiers -194.70% -81.44% -68.97%

Summary

Research Frontiers beats Patriot Scientific on 6 of the 10 factors compared between the two stocks.

Patriot Scientific Company Profile

Patriot Scientific Corporation focuses on commercializing microprocessor technologies through broad and open licensing. The company was founded in 1987 and is based in Carlsbad, California.

Research Frontiers Company Profile

Research Frontiers Incorporated develops and markets technology and devices to control the flow of light in the United States. The company 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, lamination services, and electronics to power end-products incorporating the film, as well as the end-products, such as windows, skylights, and sunroofs. Its 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. The company serves aerospace, architectural, automotive, and marine industries. Research Frontiers Incorporated was founded in 1965 and is headquartered in Woodbury, New York.

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