Critical Comparison: Rubicon Technology (NASDAQ:RBCN) and Universal Security Instruments (NYSE:UUU)

Valuation & Earnings

This table compares Universal Security Instruments and Rubicon Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Security Instruments	$21.29 million	0.25	-$400,000.00	($0.11)	-20.55
Rubicon Technology	$3.88 million	1.08	-$10,000.00	$0.19	9.26

Rubicon Technology has lower revenue, but higher earnings than Universal Security Instruments. Universal Security Instruments is trading at a lower price-to-earnings ratio than Rubicon Technology, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Universal Security Instruments has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Rubicon Technology has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Rubicon Technology shares are owned by institutional investors. 10.7% of Universal Security Instruments shares are owned by company insiders. Comparatively, 3.6% of Rubicon Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Universal Security Instruments	-1.13%	-4.79%	-2.46%
Rubicon Technology	-29.90%	-122.29%	-47.56%

Summary

Rubicon Technology beats Universal Security Instruments on 6 of the 11 factors compared between the two stocks.

About Universal Security Instruments

Universal Security Instruments, Inc., together with its subsidiary, engages in the marketing and distribution of safety and security products in the United States. The company offers a line of safety alarms units, including replaceable batteries, sealed batteries, and battery backup alarms; and smoke alarms, which include hearing impaired and heat alarms, as well as carbon monoxide alarms, door chimes, ventilation products, ground fault circuit interrupters, and other electrical devices under the UNIVERSAL and USI Electric trade names. It provides its products to wholesale distributors; chain, discount, television retailers; home center stores; catalog and mail order companies; electrical and lighting distributors, and manufactured housing companies; and other distributors. It also sells its products through independent sales organizations and sales representatives, as well as through its own sales catalogs and brochures, and website. Universal Security Instruments, Inc. was incorporated in 1969 and is headquartered in Owings Mills, Maryland.

About Rubicon Technology

Rubicon Technology, Inc. provides monocrystalline sapphire for applications in optical and industrial systems in North America, Asia, and internationally. The company offers optical and industrial sapphire products in various shapes and sizes, including sheets, rods, tubes, core, ingots, and prisms 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. It serves defense subcontractors, industrial manufacturers, fabricators, and resellers. The company was incorporated in 2001 and is based in Bensenville, Illinois.