Financial Survey: Mellanox Technologies (NASDAQ:MLNX) vs. Rubicon Technology (NASDAQ:RBCN)

Share on StockTwits

Mellanox Technologies (NASDAQ:MLNX) and Rubicon Technology (NASDAQ:RBCN) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

74.3% of Mellanox Technologies shares are held by institutional investors. Comparatively, 27.4% of Rubicon Technology shares are held by institutional investors. 4.2% of Mellanox Technologies shares are held by company insiders. Comparatively, 13.9% of Rubicon Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Mellanox Technologies and Rubicon Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mellanox Technologies 14.09% 16.86% 13.63%
Rubicon Technology 28.11% -2.56% -2.48%

Analyst Recommendations

This is a breakdown of current recommendations for Mellanox Technologies and Rubicon Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mellanox Technologies 0 7 2 0 2.22
Rubicon Technology 0 0 0 0 N/A

Mellanox Technologies currently has a consensus price target of $116.83, suggesting a potential upside of 8.39%. Given Mellanox Technologies’ higher probable upside, research analysts clearly believe Mellanox Technologies is more favorable than Rubicon Technology.

Earnings & Valuation

This table compares Mellanox Technologies and Rubicon Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mellanox Technologies $1.09 billion 5.42 $134.26 million $3.85 27.99
Rubicon Technology $3.88 million 6.43 $960,000.00 N/A N/A

Mellanox Technologies has higher revenue and earnings than Rubicon Technology.

Volatility & Risk

Mellanox Technologies has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Summary

Mellanox Technologies beats Rubicon Technology on 7 of the 11 factors compared between the two stocks.

About Mellanox Technologies

Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, markets, and sells interconnect products and solutions. Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems. The company offers InfiniBand solutions, including switch and gateway integrated circuits (ICs), adapter cards, cables, modules, and software, as well as switch, gateway, and long-haul systems; and Ethernet solutions, such as Ethernet switch products and Ethernet adapters for use in enterprise data center, high-performance computing, embedded environments, hyperscale, Web 2.0, and cloud data centers. It also provides adapters to server, storage, communications infrastructure, and embedded systems original equipment manufacturers (OEMs) as ICs or standard card form factors with PCI express interfaces; and switch ICs and systems to server, storage, communications infrastructure, and embedded systems OEMs to create switching equipment. In addition, the company supports server operating systems, including Linux, Windows, AIX, HPUX, Solaris, and VxWorks. It sells its products through its direct sales force, a network of sales representatives, and independent distributors. The company operates in the United States, China, Europe, rest of Americas, and rest of Asia. Mellanox Technologies, Ltd. was founded in 1999 and is headquartered in Sunnyvale, 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.

Receive News & Ratings for Mellanox Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mellanox Technologies and related companies with MarketBeat.com's FREE daily email newsletter.