Head-To-Head Comparison: Research Frontiers (NASDAQ:REFR) & Flex (NASDAQ:FLEX)

Flex (NASDAQ:FLEX) and Research Frontiers (NASDAQ:REFR) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk and Volatility

Flex has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.

Insider & Institutional Ownership

94.3% of Flex shares are held by institutional investors. Comparatively, 11.9% of Research Frontiers shares are held by institutional investors. 0.6% of Flex shares are held by company insiders. Comparatively, 6.5% of Research Frontiers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Flex and Research Frontiers”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flex	$25.81 billion	0.71	$838.00 million	$2.28	21.49
Research Frontiers	$1.34 million	36.91	-$1.31 million	($0.05)	-29.40

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

Analyst Recommendations

This is a breakdown of current recommendations for Flex and Research Frontiers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flex	0	1	7	0	2.88
Research Frontiers	0	0	0	0	0.00

Flex presently has a consensus price target of $53.7143, suggesting a potential upside of 9.62%. Given Flex’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Flex is more favorable than Research Frontiers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flex	3.42%	20.25%	5.47%
Research Frontiers	-143.78%	-72.81%	-50.27%

Summary

Flex beats Research Frontiers on 12 of the 14 factors compared between the two stocks.

About Flex

Flex Ltd. provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices. Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise automotive including next generation mobility, autonomous, connectivity, electrification, and smart technologies; health solutions, such as medical devices, medical equipment, and drug delivery; and industrial solutions including capital equipment, industrial devices, and renewables and grid edge. The Nextracker segment offers solar tracker and software solutions, which are used in utility-scale and ground-mounted distributed generation solar projects. In addition, it provides a broad array of services including design and engineering, component services, rapid prototyping, fulfillment, and circular economy solutions. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Singapore.

About Research Frontiers

Research Frontiers Incorporated engages in the development and marketing of technology and devices to control the flow of light worldwide. It 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, and electronics to power end-products incorporating the film, as well as lamination services for and the end-products, such as windows, skylights, and sunroofs. The company's 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. It serves architectural, automotive, marine, and aerospace and appliance applications. The company was incorporated in 1965 and is headquartered in Woodbury, New York.