Rubicon Technology (NASDAQ:RBCN) and Ituran Location and Control (NASDAQ:ITRN) Critical Analysis

Dividends

Ituran Location and Control pays an annual dividend of $1.56 per share and has a dividend yield of 5.0%. Rubicon Technology pays an annual dividend of $11.00 per share and has a dividend yield of 774.6%. Ituran Location and Control pays out 59.8% of its earnings in the form of a dividend. Rubicon Technology pays out 5,789.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Ituran Location and Control has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ituran Location and Control and Rubicon Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ituran Location and Control	$319.98 million	1.94	$48.14 million	$2.61	11.95
Rubicon Technology	$3.88 million	0.87	-$10,000.00	$0.19	7.47

Ituran Location and Control has higher revenue and earnings than Rubicon Technology. Rubicon Technology is trading at a lower price-to-earnings ratio than Ituran Location and Control, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

94.8% of Ituran Location and Control shares are owned by institutional investors. Comparatively, 0.0% of Rubicon Technology shares are owned by institutional investors. 0.0% of Ituran Location and Control shares are owned by company insiders. Comparatively, 3.6% of Rubicon Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Ituran Location and Control and Rubicon Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ituran Location and Control	15.65%	28.31%	16.21%
Rubicon Technology	-29.90%	-122.29%	-47.56%

Summary

Ituran Location and Control beats Rubicon Technology on 11 of the 13 factors compared between the two stocks.

About Ituran Location and Control

Ituran Location and Control Ltd., together with its subsidiaries, provides location based telematics services and machine-to-machine telematics products. It operates through two segments, Telematics Services and Telematics Products. The Telematics services segment offers stolen vehicle recovery and tracking services, which enables to 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 locator services that allow customers to protect valuable merchandise and equipment. This segment also delivers 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 Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing services. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. The Telematics Products segment offers 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. The company was incorporated in 1994 and is headquartered in Azor, Israel.

About Rubicon Technology

Rubicon Technology, Inc. provides monocrystalline sapphire for applications in optical and industrial systems in North America, Asia, and internationally. The company offers optical and industrial sapphire products in various shapes and sizes, including sheets, rods, tubes, core, ingots, and prisms for a range of end markets comprising defense and aerospace, specialty lighting, instrumentation, sensors and detectors, semiconductor process equipment, electronic substrates, medical, and laser applications. It serves defense subcontractors, industrial manufacturers, fabricators, and resellers. The company was incorporated in 2001 and is based in Bensenville, Illinois.