Entropic Communications (NASDAQ: ENTR) and Park Electrochemical Corporation (NYSE:PKE) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitabiliy, valuation and risk.

Institutional and Insider Ownership

82.5% of Park Electrochemical Corporation shares are held by institutional investors. 8.0% of Park Electrochemical Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Entropic Communications and Park Electrochemical Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entropic Communications 0 0 0 0 N/A
Park Electrochemical Corporation 0 0 1 0 3.00

Park Electrochemical Corporation has a consensus price target of $22.00, indicating a potential upside of 15.49%. Given Park Electrochemical Corporation’s higher possible upside, analysts clearly believe Park Electrochemical Corporation is more favorable than Entropic Communications.

Valuation and Earnings

This table compares Entropic Communications and Park Electrochemical Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Entropic Communications N/A N/A N/A N/A N/A
Park Electrochemical Corporation $110.54 million 3.49 $11.91 million $0.38 50.13

Park Electrochemical Corporation has higher revenue and earnings than Entropic Communications.

Profitability

This table compares Entropic Communications and Park Electrochemical Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entropic Communications -10.45% -11.67% -9.68%
Park Electrochemical Corporation 6.99% 4.92% 2.89%

Dividends

Park Electrochemical Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Entropic Communications does not pay a dividend. Park Electrochemical Corporation pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Park Electrochemical Corporation beats Entropic Communications on 9 of the 10 factors compared between the two stocks.

Entropic Communications Company Profile

Entropic Communications, Inc. (Entropic) is a fabless semiconductor company. Entropic designs, develops and markets semiconductor solutions to enable home entertainment. The Company offers a portfolio of set-top box (STB), Video System-on-a-Chip (SoC) and home connectivity (Connectivity) solutions. Entropic’s Connectivity solutions enable access to broadcast and Internet Protocol television (IPTV) services, as well as deliver and distribute other media content, such as movies, music, games and photos across the home. The Company’s Connectivity solutions include home networking solutions based on the Multimedia over Coax Alliance (MoCA) standard, high-speed broadband access solutions and Direct Broadcast Satellite outdoor unit (DBS ODU) solutions. Entropic’s STB product portfolio consists of a range of digital STB components and system solutions for the satellite, terrestrial, cable and IPTV markets across the world.

Park Electrochemical Corporation Company Profile

Park Electrochemical Corp. is a global advanced materials company. The Company develops, manufactures, markets and sells digital and radio frequency (RF)/microwave printed circuit materials products principally for the telecommunications and Internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies and low-volume tooling products for the aerospace markets. The Company operates through integrated business units in Asia, Europe and North America. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains research and development facilities in Arizona, Kansas and Singapore. The Company’s foreign operations are conducted principally by the Company’s subsidiaries in Singapore and France.

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