Head to Head Analysis: Flux Power (NASDAQ:FLUX) versus Research Frontiers (NASDAQ:REFR)

Flux Power (NASDAQ:FLUX) and Research Frontiers (NASDAQ:REFR) 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 valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flux Power	-13.13%	-2,054.56%	-26.99%
Research Frontiers	-143.78%	-72.81%	-50.27%

Institutional and Insider Ownership

38.0% of Flux Power shares are owned by institutional investors. Comparatively, 11.9% of Research Frontiers shares are owned by institutional investors. 26.0% of Flux Power shares are owned by company insiders. Comparatively, 6.5% of Research Frontiers shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Flux Power and Research Frontiers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flux Power	$60.82 million	0.49	-$8.33 million	($0.50)	-3.54
Research Frontiers	$1.34 million	36.91	-$1.31 million	($0.05)	-29.40

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

Risk and Volatility

Flux Power has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Flux Power and Research Frontiers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flux Power	0	0	2	0	3.00
Research Frontiers	0	0	0	0	0.00

Flux Power presently has a consensus price target of $6.00, suggesting a potential upside of 238.98%. Given Flux Power’s stronger consensus rating and higher probable upside, equities analysts clearly believe Flux Power is more favorable than Research Frontiers.

Summary

Flux Power beats Research Frontiers on 10 of the 14 factors compared between the two stocks.

About Flux Power

Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie pallet packs; and smart wall mounted chargers to interface with its BMS. It sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. The company is headquartered in Vista, California.

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.