Financial Survey: Qorvo (NASDAQ:QRVO) and RF Industries (NASDAQ:RFIL)

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

Valuation & Earnings

This table compares RF Industries and Qorvo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RF Industries	$64.86 million	1.09	-$6.60 million	($0.13)	-51.15
Qorvo	$3.72 billion	2.11	$55.62 million	$0.58	145.43

Qorvo has higher revenue and earnings than RF Industries. RF Industries is trading at a lower price-to-earnings ratio than Qorvo, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

23.5% of RF Industries shares are held by institutional investors. Comparatively, 88.6% of Qorvo shares are held by institutional investors. 15.7% of RF Industries shares are held by insiders. Comparatively, 0.5% of Qorvo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RF Industries	-1.95%	1.63%	0.78%
Qorvo	1.50%	12.48%	6.87%

Analyst Ratings

This is a summary of current ratings and target prices for RF Industries and Qorvo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RF Industries	0	0	1	0	3.00
Qorvo	3	11	5	0	2.11

RF Industries presently has a consensus target price of $4.50, suggesting a potential downside of 32.33%. Qorvo has a consensus target price of $90.89, suggesting a potential upside of 7.76%. Given Qorvo’s higher probable upside, analysts plainly believe Qorvo is more favorable than RF Industries.

Volatility and Risk

RF Industries has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Summary

Qorvo beats RF Industries on 12 of the 14 factors compared between the two stocks.

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.

About Qorvo

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.