Analyzing Amphenol (APH) and RF Industries (RFIL)

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Amphenol (NYSE:APH) and RF Industries (NASDAQ:RFIL) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of recent ratings and price targets for Amphenol and RF Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amphenol 0 3 3 0 2.50
RF Industries 0 0 0 0 N/A

Amphenol currently has a consensus target price of $98.67, indicating a potential upside of 9.63%. Given Amphenol’s higher probable upside, equities research analysts plainly believe Amphenol is more favorable than RF Industries.

Institutional and Insider Ownership

94.0% of Amphenol shares are held by institutional investors. Comparatively, 27.1% of RF Industries shares are held by institutional investors. 2.3% of Amphenol shares are held by company insiders. Comparatively, 8.5% of RF Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Amphenol and RF Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amphenol 9.64% 28.57% 11.73%
RF Industries 10.27% 23.75% 18.87%

Volatility & Risk

Amphenol has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, RF Industries has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Valuation & Earnings

This table compares Amphenol and RF Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amphenol $7.01 billion 3.87 $650.50 million $3.12 28.85
RF Industries $30.96 million 2.36 $380,000.00 N/A N/A

Amphenol has higher revenue and earnings than RF Industries.

Dividends

Amphenol pays an annual dividend of $0.92 per share and has a dividend yield of 1.0%. RF Industries pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Amphenol pays out 29.5% of its earnings in the form of a dividend. Amphenol has raised its dividend for 6 consecutive years. Amphenol is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Amphenol beats RF Industries on 11 of the 15 factors compared between the two stocks.

Amphenol Company Profile

Amphenol Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of electrical, electronic, and fiber optic connectors worldwide. It operates through two segments, Interconnect Products and Assemblies, and Cable Products and Solutions. The Interconnect Products and Assemblies segment offers connector and connector systems, including fiber optic, harsh environment, high-speed, and radio frequency interconnect products, as well as antennas; power interconnect products, bus bars, and distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; and other products comprising antennas, flexible and rigid printed circuit boards, hinges, molded parts, production-related products, sensors and sensor-based products, and switches. The Cable Products and Solutions segment offers coaxial, power, and specialty cables; cable assemblies; and components comprising combiner/splitter products, connector and connector systems, and fiber optic components. The company sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and communication network operators in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.

RF Industries Company Profile

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States and internationally. The company's RF Connector and Cable Assembly division designs, manufactures, and distributes coaxial connectors and cable assemblies that are integrated with coaxial connectors. Its Cables Unlimited division manufactures and sells custom and standard cable assemblies, hybrid fiber optic power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment. The company's Comnet Telecom Supply division manufactures and sells fiber optics cables, distinctive cabling technologies, and custom patch cord assemblies, as well as other data center products. Its Rel-Tech Electronics division designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, medical, and military customers. The company sells its products through warehousing distributors and original equipment manufacturer (OEM) customers. It serves telecommunications carriers, wireless and network infrastructure carriers, data center and co-location companies, and OEMs. The company was formerly known as Celltronics, Inc. and changed its name to RF Industries, Ltd. in November 1990. RF Industries, Ltd. was founded in 1979 and is headquartered in San Diego, California.

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