Head to Head Contrast: Bel Fuse (NASDAQ:BELFA) and Research Frontiers (NASDAQ:REFR)

Bel Fuse (NASDAQ:BELFA) and Research Frontiers (NASDAQ:REFR) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Bel Fuse and Research Frontiers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$534.79 million	2.12	$40.96 million	$3.26	27.47
Research Frontiers	$1.34 million	40.27	-$1.31 million	($0.03)	-53.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	7.69%	18.47%	8.87%
Research Frontiers	-66.16%	-38.61%	-29.51%

Risk & Volatility

Bel Fuse has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Bel Fuse and Research Frontiers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	0	0	1	1	3.50
Research Frontiers	0	0	0	0	0.00

Bel Fuse presently has a consensus price target of $115.00, indicating a potential upside of 28.43%. Given Bel Fuse’s stronger consensus rating and higher probable upside, analysts clearly believe Bel Fuse is more favorable than Research Frontiers.

Insider & Institutional Ownership

6.0% of Bel Fuse shares are owned by institutional investors. Comparatively, 11.9% of Research Frontiers shares are owned by institutional investors. 5.5% of Bel Fuse shares are owned by insiders. Comparatively, 6.5% of Research Frontiers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Bel Fuse beats Research Frontiers on 12 of the 15 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

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.