Critical Survey: FIT Hon Teng (OTCMKTS:FITGF) versus Richardson Electronics (NASDAQ:RELL)

Richardson Electronics (NASDAQ:RELL) and FIT Hon Teng (OTCMKTS:FITGF) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Insider and Institutional Ownership

71.9% of Richardson Electronics shares are owned by institutional investors. 32.5% of Richardson Electronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Richardson Electronics and FIT Hon Teng, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richardson Electronics	0	0	1	0	3.00
FIT Hon Teng	0	0	0	0	N/A

Richardson Electronics currently has a consensus price target of $13.00, suggesting a potential downside of 4.41%. Given Richardson Electronics’ higher possible upside, equities analysts clearly believe Richardson Electronics is more favorable than FIT Hon Teng.

Earnings & Valuation

This table compares Richardson Electronics and FIT Hon Teng”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richardson Electronics	$197.60 million	0.98	$60,000.00	$0.28	48.57
FIT Hon Teng	N/A	N/A	N/A	N/A	N/A

Richardson Electronics has higher revenue and earnings than FIT Hon Teng.

Profitability

This table compares Richardson Electronics and FIT Hon Teng’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richardson Electronics	-0.40%	-0.24%	-0.20%
FIT Hon Teng	N/A	N/A	N/A

Summary

Richardson Electronics beats FIT Hon Teng on 5 of the 8 factors compared between the two stocks.

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.

About FIT Hon Teng

FIT Hon Teng Limited develops, produces, and sells interconnect solutions and related products in Taiwan, the United States, the People's Republic of China, Hong Kong, the United Kingdom, Singapore, Malaysia, and internationally. It operates through two segments, Intermediate Products and Consumer Products. The company provides RF antenna cable and module assemblies; coaxial, internal, external, RJ, wire harness, USB, E/M, EM, flat, high speed, power, ribbon, SAS, and S-ATA cable assemblies; light source products; backplane, card, edge card, memory, high speed, input/output, power, and wire to board/board to wire connectors; sockets and terminal blocks; and wired headsets, speaker systems, and power accessories. It also engages in the research, development, manufacturing, and sale of batteries and acoustic components; manufacturing and sale of metal processing machinery and equipment; development, manufacturing, and sale of optoelectronics technology; development and testing of new energy automobiles charging systems; sale of precision mechanical and technological electronic products, optoelectronics, consumer electronics, and connectivity solutions products; research, development, production, processing, and sale of smart and automation equipment, electronic-specific and testing equipment, tools, dies, and related parts; and development of new technologies in the field of dynamic loudspeakers. In addition, the company provides optical communication modules and high-speed cables; technology transfer and consulting, and technical services; and software solutions for water consumption. It offers its products under the Belkin, Wemo, and Phyn brand names. The company was formerly known as New Wing International Holdings Limited and changed its name to FIT Hon Teng Limited in June 2013. The company was founded in 1981 and is headquartered in New Taipei City, Taiwan. Foxconn FIT Hon Teng Limited is a subsidiary of Foxconn (Far East) Limited.