Analyzing B.O.S. Better Online Solutions (NASDAQ:BOSC) & RF Industries (NASDAQ:RFIL)

B.O.S. Better Online Solutions (NASDAQ:BOSC) and RF Industries (NASDAQ:RFIL) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Risk & Volatility

B.O.S. Better Online Solutions has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, RF Industries has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Profitability

This table compares B.O.S. Better Online Solutions and RF Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B.O.S. Better Online Solutions	7.22%	12.69%	8.29%
RF Industries	2.83%	15.32%	7.80%

Earnings and Valuation

This table compares B.O.S. Better Online Solutions and RF Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B.O.S. Better Online Solutions	$50.57 million	0.60	$3.61 million	$0.52	8.25
RF Industries	$80.59 million	0.99	$80,000.00	$0.22	33.27

B.O.S. Better Online Solutions has higher earnings, but lower revenue than RF Industries. B.O.S. Better Online Solutions is trading at a lower price-to-earnings ratio than RF Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for B.O.S. Better Online Solutions and RF Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B.O.S. Better Online Solutions	0	1	1	0	2.50
RF Industries	0	2	2	0	2.50

B.O.S. Better Online Solutions currently has a consensus price target of $8.00, suggesting a potential upside of 86.48%. RF Industries has a consensus price target of $14.50, suggesting a potential upside of 98.09%. Given RF Industries’ higher probable upside, analysts plainly believe RF Industries is more favorable than B.O.S. Better Online Solutions.

Insider and Institutional Ownership

15.1% of B.O.S. Better Online Solutions shares are held by institutional investors. Comparatively, 23.5% of RF Industries shares are held by institutional investors. 4.3% of B.O.S. Better Online Solutions shares are held by insiders. Comparatively, 20.4% of RF Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

RF Industries beats B.O.S. Better Online Solutions on 9 of the 13 factors compared between the two stocks.

About B.O.S. Better Online Solutions

B.O.S. Better Online Solutions Ltd. provides intelligent robotics, radio frequency identification (RFID), and supply chain solutions for enterprises worldwide. The Intelligent Robotics Division provides custom-made machines for industrial automation and assembly of products and packing that offer technological solutions. The RFID Division provides hardware products, such as thermal and barcode printers; RFID and barcode scanners and readers; wireless, mobile, and forklift terminals; wireless infrastructure; active and passive RFID tags; ribbons, labels, and tags; and RFID systems for libraries. It also develops Warehouse Management System, a data collection solution for logistics management in logistic centers and warehouses; RFID-based systems for tracking inventory in a produce packing house; automatic systems for industrial packing lines; automatic systems to track the production line; and automatic systems to identify and track vehicles for transportation-related settings. In addition, this segment provides maintenance and repair services for data collection equipment, as well as warehouse and on-site service plans; on-site inventory count services in various fields; and asset tagging and counting services for corporate and governmental entities. The Supply Chain Division offers electro-mechanical components, electronics components, communications products, and components consolidation services to aerospace, defense, and other industries. This segment also provides inventory and quality control management of components entering production lines; and inventory management services for ongoing projects, including warehouse functions. The company markets its products through direct sales and sales agents, as well as through distributors. B.O.S. Better Online Solutions Ltd. was incorporated in 1990 and is headquartered in Rishon LeZion, Israel.

About RF Industries

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States, Canada, Italy, Mexico, and internationally. The company operates through two segments, RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly. The company designs, manufactures, and distributes various coaxial connectors and cable assemblies that are integrated with coaxial connectors; custom copper and fiber cable assemblies, complex hybrid fiber optic and power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment; energy-efficient cooling systems for wireless base stations and remote equipment shelters; and custom-designed pole-ready 5G small cell integrated enclosures. It also designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, medical, and military customers; connectivity solutions to telecommunications and data communications distributors; thermal control systems; and radio frequency and microwave distribution system products, such as dividers, directional couplers, and filters. The company sells its products through warehousing distributors and in-house marketing and sales team. It serves telecommunications carriers and equipment manufacturers, wireless and network infrastructure carriers, and original equipment manufacturers. The company was formerly known as Celltronics, Inc. and changed its name RF Industries, Ltd. in November 1990. RF Industries, Ltd. was incorporated in 1979 and is headquartered in San Diego, California.