Head-To-Head Survey: Vontier (NYSE:VNT) versus Richardson Electronics (NASDAQ:RELL)

Vontier (NYSE:VNT) and Richardson Electronics (NASDAQ:RELL) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Vontier and Richardson Electronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vontier	1	3	4	0	2.38
Richardson Electronics	0	1	2	0	2.67

Vontier currently has a consensus price target of $41.00, suggesting a potential upside of 27.14%. Richardson Electronics has a consensus price target of $24.00, suggesting a potential upside of 15.44%. Given Vontier’s higher probable upside, analysts plainly believe Vontier is more favorable than Richardson Electronics.

Institutional and Insider Ownership

95.8% of Vontier shares are held by institutional investors. Comparatively, 72.0% of Richardson Electronics shares are held by institutional investors. 1.1% of Vontier shares are held by insiders. Comparatively, 31.7% of Richardson Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Vontier and Richardson Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vontier	$3.08 billion	1.42	$406.10 million	$2.41	13.38
Richardson Electronics	$228.56 million	1.34	$6.38 million	$0.58	35.84

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

Risk and Volatility

Vontier has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Richardson Electronics has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Dividends

Vontier pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. Richardson Electronics pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Vontier pays out 4.1% of its earnings in the form of a dividend. Richardson Electronics pays out 41.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Vontier and Richardson Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vontier	11.34%	38.57%	11.30%
Richardson Electronics	3.57%	4.82%	3.85%

Summary

Vontier beats Richardson Electronics on 11 of the 16 factors compared between the two stocks.

About Vontier

Vontier Corporation provides mobility ecosystem solutions worldwide. The company operates through Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions segments. The Mobility Technologies segment provides digitally equipment solutions for mobility ecosystem, such as point-of-sale and payment systems, workflow automation, telematics, data analytics, software platform, and integrated solutions for alternative fuel dispensing. The Repair Solutions segment manufactures and distributes vehicle repair tools, toolboxes, automotive diagnostic equipment and software through mobile franchise network. The Environmental and Fueling Solutions segment offers environmental, fueling hardware, software, and aftermarket solutions for fueling infrastructures. It also offers a range of solutions, including environmental sensors; fueling equipment; field payment hardware; point-of sale, workflow, and monitoring software; vehicle tracking and fleet management; software solutions for EV charging; and vehicle mechanics, and technicians equipment. The company markets its products and services to retail and commercial fueling, convenience store, and car wash operators; commercial vehicle repair businesses, fleet owners/operators and electric vehicle charging network operators, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. Vontier Corporation was incorporated in 2019 and is headquartered in Raleigh, North Carolina.

About Richardson Electronics

Richardson Electronics, Ltd. engages in the provision of engineered solutions, power grid and microwave tube, and related consumables worldwide. The Power and Microwave Technologies segment manufactures electron tubes and radio frequency (RF), microwave and power components used in semiconductor manufacturing equipment, RF, and wireless and industrial power applications, as well as various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. This segment also provides thyratrons and rectifiers, power tubes, ignitrons, magnetrons, phototubes, microwave generators, ultracapacitor modules, and liquid crystal display monitors under the Amperex, Cetron, and National brands. The Green Energy Solutions segment offers design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket, and technical service and repair services for various applications, such as wind, solar, hydrogen, and electric vehicles; and other power management applications that support green solutions including synthetic diamond manufacturing. The Canvys segment provides custom display solutions, which includes touch screens, protective panels, custom enclosures, All-In-One computers, specialized cabinet finishes and application specific software packages, and certification services. The Healthcare segment provides diagnostic imaging replacement parts for CT and MRI systems, replacement CT and MRI tubes, CT service training, MRI and RF amplifiers, hydrogen thyratrons, klystrons, magnetrons, flat panel detector upgrades, pre-owned CT systems, and additional replacement solutions. It serves energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company was founded in 1947 and is headquartered in LaFox, Illinois.