Research Frontiers (NASDAQ: REFR) and Liberty Tax (NASDAQ:TAX) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.
Earnings & Valuation
This table compares Research Frontiers and Liberty Tax’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Research Frontiers||$1.51 million||14.65||-$2.41 million||($0.10)||-8.70|
|Liberty Tax||$173.99 million||0.60||$13.01 million||$1.15||7.13|
Liberty Tax has higher revenue and earnings than Research Frontiers. Research Frontiers is trading at a lower price-to-earnings ratio than Liberty Tax, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Research Frontiers and Liberty Tax, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Research Frontiers currently has a consensus price target of $3.00, indicating a potential upside of 244.83%. Given Research Frontiers’ stronger consensus rating and higher probable upside, analysts clearly believe Research Frontiers is more favorable than Liberty Tax.
Risk & Volatility
Research Frontiers has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500. Comparatively, Liberty Tax has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
This table compares Research Frontiers and Liberty Tax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Liberty Tax pays an annual dividend of $0.64 per share and has a dividend yield of 7.8%. Research Frontiers does not pay a dividend. Liberty Tax pays out 55.7% of its earnings in the form of a dividend.
Institutional and Insider Ownership
14.7% of Research Frontiers shares are held by institutional investors. Comparatively, 48.8% of Liberty Tax shares are held by institutional investors. 9.5% of Research Frontiers shares are held by company insiders. Comparatively, 15.3% of Liberty Tax shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Liberty Tax beats Research Frontiers on 11 of the 16 factors compared between the two stocks.
About Research Frontiers
Research Frontiers Incorporated develops and markets technology and devices to control the flow of light in the United States. 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, lamination services, and electronics to power end-products incorporating the film, as well as 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 aerospace, architectural, automotive, and marine industries. Research Frontiers Incorporated was founded in 1965 and is headquartered in Woodbury, New York.
About Liberty Tax
Liberty Tax, Inc., together with its subsidiaries, provides tax preparation services and solutions in the United States and Canada. The company also facilitates refund-based tax settlement financial products, such as refund transfer products, refund-based loans, and personal income tax refund discounting, as well as provides an online digital Do-It-Yourself tax program in the United States. Its customers include taxpayers who, for reasons of complexity, convenience, or the need for prompt tax refunds, seek assisted tax preparation services. Liberty Tax, Inc. offers its products and services through a network of company-owned offices and franchised locations under the Liberty Tax, Liberty Tax Service, Liberty Income Tax, Liberty Canada, and SiempreTax+ brand names. The company was formerly known as JTH Holding, Inc. and changed its name to Liberty Tax, Inc. in July 2014. Liberty Tax, Inc. was founded in 1996 and is headquartered in Virginia Beach, Virginia.
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