Ituran Location and Control Ltd. (US) (ITRN) vs. Richardson Electronics (RELL) Head to Head Survey

Ituran Location and Control Ltd. (US) (NASDAQ:ITRN) and Richardson Electronics (NASDAQ:RELL) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Dividends

Ituran Location and Control Ltd. (US) pays an annual dividend of $0.96 per share and has a dividend yield of 2.9%. Richardson Electronics pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. Ituran Location and Control Ltd. (US) pays out 45.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Ituran Location and Control Ltd. (US) and Richardson Electronics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ituran Location and Control Ltd. (US) $238.52 million 2.94 $43.79 million $2.09 15.71
Richardson Electronics $163.21 million 0.58 $3.82 million N/A N/A

Ituran Location and Control Ltd. (US) has higher revenue and earnings than Richardson Electronics.

Insider & Institutional Ownership

58.0% of Ituran Location and Control Ltd. (US) shares are owned by institutional investors. Comparatively, 43.6% of Richardson Electronics shares are owned by institutional investors. 35.6% of Richardson Electronics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Ituran Location and Control Ltd. (US) and Richardson Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ituran Location and Control Ltd. (US) 25.13% 32.17% 17.75%
Richardson Electronics 2.56% 2.12% 1.76%

Risk & Volatility

Ituran Location and Control Ltd. (US) has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Richardson Electronics has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Ituran Location and Control Ltd. (US) and Richardson Electronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ituran Location and Control Ltd. (US) 0 0 1 0 3.00
Richardson Electronics 0 0 0 0 N/A

Ituran Location and Control Ltd. (US) currently has a consensus target price of $41.00, indicating a potential upside of 24.85%. Given Ituran Location and Control Ltd. (US)’s higher probable upside, equities research analysts plainly believe Ituran Location and Control Ltd. (US) is more favorable than Richardson Electronics.

Summary

Ituran Location and Control Ltd. (US) beats Richardson Electronics on 9 of the 14 factors compared between the two stocks.

Ituran Location and Control Ltd. (US) Company Profile

Ituran Location and Control Ltd., together with its subsidiaries, provides location-based services and wireless communications products in Israel, Brazil, Argentina, and the United States. The company's Location-Based Services segment provides stolen vehicle recovery and tracking services, which locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and personal locator services that allow customers to protect valuable merchandise and equipment. It also offers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connect, an Android platform based car service that provides access to Android market applications and various services through manufacturer interface. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The company's Wireless Communications Products segment provides Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. As of December 31, 2017, it served approximately 180,000 end-users through 38,000 corporate customers. The company was founded in 1994 and is headquartered in Azor, Israel.

Richardson Electronics Company Profile

Richardson Electronics, Ltd. engages in power and microwave technologies, customized display solutions, and healthcare equipment businesses in North America, the Asia Pacific, Europe, and Latin America. The company's Power and Microwave Technologies Group segment provides engineered solutions, power grid and microwave tubes, and related consumables; high value flat panel detector solutions, replacement parts, tubes and service training for diagnostic imaging equipment; and customized display solutions, as well as power conversion and RF and microwave components for broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology applications. Its products are used to control, switch, or amplify electrical power signals, as well as are used as display devices in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. This segment also offers technical services for microwave and industrial equipment. The company's Canvys segment provides custom display solutions, such as touch screens, protective panels, custom enclosures, specialized cabinet finishes, application specific software packages, and certification services to corporate enterprise, financial, healthcare, industrial, and medical original equipment manufacturer markets. Its Healthcare segment manufactures, refurbishes, and distributes diagnostic imaging replacement parts, including CT and MRI systems and tubes, hydrogen thyratrons, klystrons, and magnetrons; flat panel detector upgrades; and additional replacement solutions. This segment serves hospitals, medical centers, asset management companies, independent service organizations, and multi-vendor service providers. The company was founded in 1947 and is headquartered in LaFox, Illinois.

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