Power Integrations (NASDAQ: POWI) and Intersil Corp (NASDAQ:ISIL) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitabiliy, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Power Integrations and Intersil Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Integrations 0 1 3 0 2.75
Intersil Corp 0 5 0 0 2.00

Power Integrations currently has a consensus price target of $81.33, indicating a potential upside of 16.11%. Intersil Corp has a consensus price target of $22.40, indicating a potential downside of 0.40%. Given Power Integrations’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Power Integrations is more favorable than Intersil Corp.

Insider & Institutional Ownership

95.8% of Power Integrations shares are owned by institutional investors. Comparatively, 93.4% of Intersil Corp shares are owned by institutional investors. 4.3% of Power Integrations shares are owned by insiders. Comparatively, 1.6% of Intersil Corp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Power Integrations and Intersil Corp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Power Integrations $414.04 million 5.03 $75.89 million $1.87 37.46
Intersil Corp N/A N/A N/A $0.35 64.26

Power Integrations has higher revenue and earnings than Intersil Corp. Power Integrations is trading at a lower price-to-earnings ratio than Intersil Corp, indicating that it is currently the more affordable of the two stocks.

Dividends

Power Integrations pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Intersil Corp pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Power Integrations pays out 29.9% of its earnings in the form of a dividend. Intersil Corp pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Power Integrations has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Intersil Corp has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Profitability

This table compares Power Integrations and Intersil Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Power Integrations 13.37% 12.08% 10.77%
Intersil Corp 13.67% 7.83% 6.57%

Summary

Power Integrations beats Intersil Corp on 11 of the 13 factors compared between the two stocks.

Power Integrations Company Profile

Power Integrations, Inc. designs, develops and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source to the type of power required for downstream use. The Company’s ICs used in alternating current (AC)-direct current (DC) power supply convert high-voltage AC from a wall outlet to the low-voltage DC required by electronic devices. The Company offers a range of products, such as TOPSwitch, TinySwitch, LinkSwitch and Hiper families. The Company also offers CapZero and SenZero families. The Company offers a range of high-voltage gate-driver products sold under the SCALE and SCALE-II product-family names. The DPA-Switch family of products is a monolithic high-voltage DC-DC power conversion IC designed specifically for use in distributed power architectures.

Intersil Corp Company Profile

Intersil Corporation is engaged in designing and developing power management and precision analog integrated circuits (IC). The Company provides power management and precision analog technology for applications in the infrastructure, industrial, automotive, military, aerospace, computing, and consumer markets. It supplies a range of power IC solutions for battery management, processor power management and display power management, including power regulators, converters and controllers, as well as integrated power modules. It also provides precision analog components, such as amplifiers and buffers, proximity and light sensors, data converters, optoelectronics, video decoders and interface products. It is also a supplier of radiation-hardened devices to the military and aerospace industries. It operates in approximately two market categories, including industrial and infrastructure, and computing and consumer.

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