InvenSense (NYSE: INVN) and Zebra Technologies Corporation (NASDAQ:ZBRA) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitabiliy, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Insider and Institutional Ownership

46.5% of InvenSense shares are held by institutional investors. Comparatively, 94.8% of Zebra Technologies Corporation shares are held by institutional investors. 14.2% of InvenSense shares are held by insiders. Comparatively, 2.5% of Zebra Technologies Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares InvenSense and Zebra Technologies Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InvenSense -20.65% -18.29% -11.24%
Zebra Technologies Corporation -2.98% 37.96% 6.41%

Earnings and Valuation

This table compares InvenSense and Zebra Technologies Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
InvenSense N/A N/A N/A ($0.58) -22.40
Zebra Technologies Corporation $3.59 billion 1.47 $602.00 million ($2.06) -48.54

Zebra Technologies Corporation has higher revenue and earnings than InvenSense. Zebra Technologies Corporation is trading at a lower price-to-earnings ratio than InvenSense, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

InvenSense has a beta of 2.58, suggesting that its stock price is 158% more volatile than the S&P 500. Comparatively, Zebra Technologies Corporation has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for InvenSense and Zebra Technologies Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InvenSense 0 4 3 0 2.43
Zebra Technologies Corporation 0 4 4 0 2.50

InvenSense presently has a consensus price target of $11.14, indicating a potential downside of 14.22%. Zebra Technologies Corporation has a consensus price target of $96.83, indicating a potential downside of 3.17%. Given Zebra Technologies Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Zebra Technologies Corporation is more favorable than InvenSense.

Summary

Zebra Technologies Corporation beats InvenSense on 8 of the 11 factors compared between the two stocks.

About InvenSense

InvenSense, Inc. (InvenSense) is engaged in designing, developing, marketing and selling of sensor system-on-chip (SoC), including accelerometers, gyroscopes and microphones for the mobile, wearable, smart home, gaming, industrial and automotive market segments. The Company delivers solutions based on its motion and sound technology; focused on solutions, such as smartphones, tablets, wearables, console and portable video gaming devices, digital television and set-top box remote controls, fitness accessories, sports equipment, digital still cameras, automobiles, ultra-books, laptops, hearing aids, stabilization systems, tools, navigation devices, remote controlled toys and other household consumer and industrial devices. Its motion solutions detect and track an object’s motion in three-dimensional space.

About Zebra Technologies Corporation

Zebra Technologies Corporation designs, manufactures and sells a range of automatic identification and data capture (AIDC) products. The Company’s AIDC products include mobile computers, barcode scanners, radio frequency identification (RFID) readers, wireless local area network (WLAN) products, specialty printers for barcode labeling and personal identification, real-time location systems (RTLS), related accessories and supplies, such as self-adhesive labels and other consumables, and utilities and application software. The Company operates through two segments: Enterprise, which comprises its mobile computing, data capture, RFID and WLAN products, and services, and Legacy Zebra, which comprises barcode and card printing, location solutions, supplies and services. The Company’s products are used in automatic identification (auto ID), data collection and personal identification applications.

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