Xilinx (NASDAQ:XLNX) and Rubicon Technology (NASDAQ:RBCN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.
Volatility and Risk
Xilinx has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Xilinx and Rubicon Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Xilinx presently has a consensus price target of $118.25, indicating a potential upside of 12.20%. Given Xilinx’s higher probable upside, equities analysts clearly believe Xilinx is more favorable than Rubicon Technology.
Institutional and Insider Ownership
85.1% of Xilinx shares are owned by institutional investors. Comparatively, 23.9% of Rubicon Technology shares are owned by institutional investors. 0.2% of Xilinx shares are owned by insiders. Comparatively, 13.9% of Rubicon Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Xilinx pays an annual dividend of $1.48 per share and has a dividend yield of 1.4%. Rubicon Technology does not pay a dividend. Xilinx pays out 42.5% of its earnings in the form of a dividend. Xilinx has raised its dividend for 8 consecutive years.
Earnings and Valuation
This table compares Xilinx and Rubicon Technology’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Xilinx||$3.06 billion||8.70||$889.75 million||$3.48||30.28|
|Rubicon Technology||$3.88 million||6.22||$960,000.00||N/A||N/A|
Xilinx has higher revenue and earnings than Rubicon Technology.
This table compares Xilinx and Rubicon Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Xilinx beats Rubicon Technology on 12 of the 14 factors compared between the two stocks.
Xilinx, Inc. designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips, and three dimensional ICs; adaptive compute acceleration platform; software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards; and intellectual property (IP) core licenses covering Ethernet, memory controllers, Interlaken, and peripheral component interconnect express interfaces, as well as domain-specific IP in the areas of embedded, digital signal processing and connectivity, and market-specific IP cores. The company also offers development boards; development kits, including hardware, design tools, IP, and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications; and configuration products, such as one-time programmable and in-system programmable storage devices to configure field programmable gate arrays. In addition, it provides design, customer training, field engineering, and technical support services. The company offers its products to electronic equipment manufacturers in sub-segments, such as wireline and data center, wireless, aerospace and defense, test and measurement, industrial, scientific and medical, automotive, audio, video and broadcast, and consumer. Xilinx, Inc. sells its products through a network of independent distributors; and through direct sales to original equipment manufacturers and electronic manufacturing service providers, as well as independent sales representatives. The company has a strategic collaboration with ZF Friedrichshafen AG; and technology collaboration with Shenzhen Youjia Innovation Technology Co., Ltd. Xilinx, Inc. was founded in 1984 and is headquartered in San Jose, California.
About Rubicon Technology
Rubicon Technology, Inc. provides monocrystalline sapphire for applications in optical and industrial systems. It offers optical and industrial sapphire products in various shapes and sizes, including round and rectangular windows and wafers, domes, tubes, and rods 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. The company markets and sells its products through its direct sales force in North America, Europe, and Asia. Its principal customers include defense subcontractors, industrial manufacturers, fabricators, and resellers. The company was founded in 2001 and is headquartered in Bensenville, Illinois.
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