Critical Comparison: Research Frontiers (NASDAQ:REFR) vs. Pendrell (OTCMKTS:PCOA)

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

Volatility and Risk

Research Frontiers has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Pendrell has a beta of -0.53, suggesting that its stock price is 153% less volatile than the S&P 500.

Earnings & Valuation

This table compares Research Frontiers and Pendrell’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Research Frontiers $1.56 million 79.95 -$3.81 million N/A N/A
Pendrell $42.77 million 2.92 $19.06 million N/A N/A

Pendrell has higher revenue and earnings than Research Frontiers.

Insider and Institutional Ownership

16.7% of Research Frontiers shares are owned by institutional investors. 7.6% of Research Frontiers shares are owned by insiders. Comparatively, 41.5% of Pendrell shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Research Frontiers and Pendrell, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Research Frontiers 0 0 0 0 N/A
Pendrell 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
Research Frontiers -194.70% -38.78% -33.20%
Pendrell N/A N/A N/A

Summary

Pendrell beats Research Frontiers on 6 of the 9 factors compared between the two stocks.

About Research Frontiers

Research Frontiers Incorporated develops and markets technology and devices to control the flow of light worldwide. The company 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. Its 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. The company serves automotive, aerospace and marine, and architectural industries. Research Frontiers Incorporated was founded in 1965 and is headquartered in Woodbury, New York.

About Pendrell

Pendrell Corporation invests in, acquires, and develops businesses with technologies that are protected by intellectual property (IP) rights in the United States. It manages three IP licensing programs comprising memory and storage technologies, digital media, and digital cinema. The company's digital media program is supported by patents and patent applications to protect against unauthorized duplication and use of digital content during the transfer of the digital content. It grants digital media licenses to manufacturers, distributors, and providers of consumer products. The company's memory and storage technologies are used in electronic devices, including licensees of flash memory component suppliers, solid state disk manufacturers, and device vendors. Its digital cinema program is supported by DRM Patents and patent applications designed to protect against unauthorized creation, duplication and use of digital cinema content that is distributed to movie theaters worldwide. Its digital cinema licensees include distributors and exhibitors of digital content, such as motion picture producers, motion picture distributors, and equipment vendors. The company was formerly known as ICO Global Communications (Holdings) Limited and changed its name to Pendrell Corporation in July 2011. Pendrell Corporation was founded in 1995 and is headquartered in Kirkland, Washington.

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