Head-To-Head Comparison: Research Frontiers (NASDAQ:REFR) vs. Veralto (NYSE:VLTO)

Veralto (NYSE:VLTO) and Research Frontiers (NASDAQ:REFR) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Veralto and Research Frontiers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veralto	0	4	6	0	2.60
Research Frontiers	1	0	0	0	1.00

Veralto currently has a consensus price target of $112.50, indicating a potential upside of 18.36%. Given Veralto’s stronger consensus rating and higher possible upside, analysts plainly believe Veralto is more favorable than Research Frontiers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veralto	17.35%	34.76%	13.38%
Research Frontiers	-344.56%	-168.54%	-85.08%

Risk and Volatility

Veralto has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Research Frontiers has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Earnings and Valuation

This table compares Veralto and Research Frontiers”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veralto	$5.50 billion	4.21	$940.00 million	$3.96	24.00
Research Frontiers	$1.12 million	13.51	-$2.05 million	($0.07)	-6.20

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

Insider and Institutional Ownership

91.3% of Veralto shares are held by institutional investors. Comparatively, 11.9% of Research Frontiers shares are held by institutional investors. 0.4% of Veralto shares are held by insiders. Comparatively, 6.5% of Research Frontiers shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Veralto beats Research Frontiers on 12 of the 14 factors compared between the two stocks.

About Veralto

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions. The PQI segment offers inline printing solutions for products and packaging with marking and coding systems; marking and coding for packaged goods and related consumables; design software and imaging systems for the creation of new packaging designs; color management solutions for printed packages and consumer and industrial products; color standard services for the design industry; and a software solution that provides digital asset management, marketing resource management, and product information management. This segment sells its products and services through the Videojet, Linx, Esko, X-Rite, and Pantone brands to regulated industries, including municipal utilities, food and beverage, pharmaceutical, and industrials. The company was formerly known as DH EAS Holding Corp. and changed its name to Veralto Corporation in February 2023. Veralto Corporation was incorporated in 2022 and is headquartered in Waltham, Massachusetts.

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.