Critical Survey: Aquantia (AQ) versus Rubicon Technology (RBCN)

Aquantia (NYSE:AQ) and Rubicon Technology (NASDAQ:RBCN) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Risk & Volatility

Aquantia has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Aquantia and Rubicon Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aquantia 0 3 4 0 2.57
Rubicon Technology 0 0 0 0 N/A

Aquantia presently has a consensus price target of $14.38, suggesting a potential upside of 80.14%. Given Aquantia’s higher probable upside, research analysts plainly believe Aquantia is more favorable than Rubicon Technology.

Insider and Institutional Ownership

51.7% of Aquantia shares are held by institutional investors. Comparatively, 27.6% of Rubicon Technology shares are held by institutional investors. 24.1% of Aquantia shares are held by insiders. Comparatively, 12.9% of Rubicon Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Aquantia 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
Aquantia $120.78 million 2.32 -$9.77 million ($0.29) -27.52
Rubicon Technology $5.04 million 4.45 -$17.85 million N/A N/A

Aquantia has higher revenue and earnings than Rubicon Technology.

Profitability

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

Net Margins Return on Equity Return on Assets
Aquantia -8.09% -10.45% -8.67%
Rubicon Technology -125.00% -21.33% -20.56%

Summary

Aquantia beats Rubicon Technology on 10 of the 11 factors compared between the two stocks.

About Aquantia

Aquantia Corp., together with its subsidiaries, designs, develops, and markets advanced high-speed communication integrated circuits for Ethernet connectivity in the data center, enterprise infrastructure, and access markets worldwide. Its products include corporate and cloud data center products; enterprise infrastructure products; and access products, such as client connectivity and carrier access. The company sells its products to integrated circuit suppliers, original equipment manufacturers, and original design manufacturers through direct sales. Aquantia Corp. was founded in 2004 and is headquartered in San Jose, 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 blanks, 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's product lines include thin, double-side polished windows as thin as 300 microns for 6 inches optical windows, and large-area blanks and polished windows; round C-plane sapphire windows approximately 11 inches in diameter and A-plane windows approximately 18 inches in diameter with UV grade windows approximately 13.5 inches in diameter; and sapphire window blanks at 36 x 18 x 0.8 inches dimensions. It markets and sells its products through its direct sales force in Asia, Australia, North America, and Europe. The company's principal customers include defense sub-contractors, industrial manufacturers, fabricators, and resellers. Rubicon Technology, Inc. was incorporated in 2001 and is headquartered in Bensenville, Illinois.

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