Head to Head Contrast: Research Frontiers (NASDAQ:REFR) and Vuzix (NASDAQ:VUZI)

Vuzix (NASDAQ:VUZI) and Research Frontiers (NASDAQ:REFR) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vuzix	$6.28 million	33.33	-$32.27 million	($0.39)	-6.36
Research Frontiers	$1.12 million	11.86	-$2.05 million	($0.07)	-5.44

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

Insider & Institutional Ownership

35.9% of Vuzix shares are held by institutional investors. Comparatively, 11.9% of Research Frontiers shares are held by institutional investors. 7.3% of Vuzix shares are held by company insiders. Comparatively, 6.5% of Research Frontiers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vuzix	-519.11%	-125.60%	-78.58%
Research Frontiers	-344.56%	-168.54%	-85.08%

Volatility and Risk

Vuzix has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Vuzix and Research Frontiers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vuzix	1	0	1	0	2.00
Research Frontiers	1	0	0	0	1.00

Summary

Vuzix beats Research Frontiers on 9 of the 13 factors compared between the two stocks.

About Vuzix

Vuzix Corporation designs, manufactures, and markets smart glasses and augmented reality (AR) technologies and products for the enterprise, medical, defense, and consumer markets. The company’s products include head-mounted smart personal display and wearable computing devices that offer users a portable viewing experience, provide solutions for mobility, wearable displays, and augmented reality, as well as original equipment manufacturer waveguide optical components and display engines. It also provides certified ERP SaaS logistics solution to support hand-held mobile phones and scanners used in logistics, warehousing, and manufacturing applications. It holds approximately 375 patents and patents pending and various IP licenses in the fields of optics, head-mounted displays, and augmented reality Video Eyewear field. It sells its products through resellers, distributors, direct to commercial customers, and online stores, as well as various Vuzix operated web stores in North America, Europe, the Asia-Pacific, and internationally. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in September 2007. Vuzix Corporation was incorporated in 1997 and is headquartered in West Henrietta, New York.

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.