Research Frontiers (NASDAQ:REFR) and Key Tronic (NASDAQ:KTCC) Head to Head Contrast

Key Tronic (NASDAQ:KTCC) 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 institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Volatility and Risk

Key Tronic has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Institutional and Insider Ownership

40.7% of Key Tronic shares are held by institutional investors. Comparatively, 11.9% of Research Frontiers shares are held by institutional investors. 7.9% of Key Tronic shares are held by insiders. Comparatively, 6.5% of Research Frontiers shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Key Tronic and Research Frontiers”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Key Tronic	$467.87 million	0.07	-$8.32 million	($1.42)	-1.98
Research Frontiers	$1.34 million	24.86	-$1.31 million	($0.06)	-16.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Key Tronic	-3.68%	-5.08%	-1.80%
Research Frontiers	-153.95%	-90.72%	-54.95%

Analyst Ratings

This is a summary of current ratings and target prices for Key Tronic and Research Frontiers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Key Tronic	1	0	0	0	1.00
Research Frontiers	1	0	0	0	1.00

Summary

Key Tronic beats Research Frontiers on 8 of the 11 factors compared between the two stocks.

About Key Tronic

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; prototype design; and full product assembly services. The company manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.

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.