Comparing Avnet (AVT) & InvenSense (INVN)
Avnet (NYSE: AVT) and InvenSense (NYSE:INVN) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Valuation and Earnings
This table compares Avnet and InvenSense’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Avnet||$17.44 billion||0.27||$754.18 million||$4.07||9.18|
Avnet has higher revenue and earnings than InvenSense. InvenSense is trading at a lower price-to-earnings ratio than Avnet, indicating that it is currently the more affordable of the two stocks.
Avnet pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. InvenSense does not pay a dividend. Avnet pays out 17.7% of its earnings in the form of a dividend. Avnet has increased its dividend for 3 consecutive years.
This table compares Avnet and InvenSense’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
97.7% of Avnet shares are owned by institutional investors. Comparatively, 46.5% of InvenSense shares are owned by institutional investors. 1.5% of Avnet shares are owned by insiders. Comparatively, 14.2% of InvenSense shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and recommmendations for Avnet and InvenSense, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avnet currently has a consensus price target of $41.14, indicating a potential upside of 10.15%. InvenSense has a consensus price target of $11.33, indicating a potential downside of 12.75%. Given Avnet’s higher possible upside, research analysts plainly believe Avnet is more favorable than InvenSense.
Risk and Volatility
Avnet has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, InvenSense has a beta of 2.58, indicating that its share price is 158% more volatile than the S&P 500.
Avnet beats InvenSense on 10 of the 15 factors compared between the two stocks.
Avnet Company Profile
Avnet, Inc. is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics Marketing (EM) segment. The EM segment markets and sells semiconductors; interconnect, passive and electromechanical devices (IP&E), and embedded products to a customer base serving various end markets. The Company creates a link in the technology supply chain that connects electronic component and computer product manufacturers and software developers with a customer base of original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), systems integrators (SIs), independent software vendors (ISVs) and value-added resellers (VARs). The Company distributes electronic components, computer products and software, as received from its suppliers or through a customized solution, and offers assembly and other services.
InvenSense Company Profile
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.
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