Exar (NYSE: EXAR) and DSP Group (NASDAQ:DSPG) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitabiliy, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

78.8% of Exar shares are held by institutional investors. Comparatively, 84.2% of DSP Group shares are held by institutional investors. 2.5% of Exar shares are held by company insiders. Comparatively, 6.0% of DSP Group shares are held 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.

Earnings & Valuation

This table compares Exar and DSP Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Exar N/A N/A N/A $1.04 12.49
DSP Group $138.14 million 1.88 $5.90 million $0.21 55.71

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

Volatility & Risk

Exar has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, DSP Group has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Profitability

This table compares Exar and DSP Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exar 44.76% 4.29% 3.70%
DSP Group 3.52% 3.41% 2.69%

Analyst Recommendations

This is a summary of recent recommendations for Exar and DSP Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exar 0 2 1 0 2.33
DSP Group 0 2 5 0 2.71

Exar presently has a consensus price target of $13.00, suggesting a potential upside of 0.08%. DSP Group has a consensus price target of $14.17, suggesting a potential upside of 21.08%. Given DSP Group’s stronger consensus rating and higher probable upside, analysts plainly believe DSP Group is more favorable than Exar.

Summary

DSP Group beats Exar on 6 of the 11 factors compared between the two stocks.

About Exar

Exar Corporation (Exar) designs, develops and markets analog mixed-signal integrated circuits (ICs) and sub-system solutions. The Company’s products are deployed in a range of applications, such as industrial, instrumentation and medical equipment, networking and telecommunication systems, servers, enterprise storage systems, flat panel displays, light emitting diode (LED) lighting solutions, set top boxes and digital video recorders. Exar’s product portfolio includes connectivity, power management, high performance analog, communications, processors, flat panel display and LED lighting. The Company designs and develops amplifiers and data converters that support a range of signal path and conditioning needs of networking, industrial control and embedded applications. The Company markets its products to three primary markets, such as industrial and embedded systems, consumer and infrastructure.

About DSP Group

DSP Group, Inc. is a global provider of wireless and audio chipset solutions for converged communications. Delivering semiconductor system solutions with software and hardware reference designs, the Company enables original equipment manufacturers, original design manufacturers, consumer electronics manufacturers and service providers to develop new products. Its segments include Home, Office and Mobile. The Home segment includes wireless chipset solutions for converged communication at home. The Office segment offers solution for Voice-over-Internet protocol (VoIP) office products, including office solutions that provide businesses with VoIP terminals with converged voice and data applications. The Mobile segment offers products for the mobile market that provides voice enhancement, always-on and far-end noise elimination targeted for mobile phone and mobile headsets and wearable devices that incorporate its noise suppression and voice quality enhancement HDClear technology.

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