Head to Head Analysis: InterDigital (IDCC) & Harris Corporation (HRS)
InterDigital (NASDAQ: IDCC) and Harris Corporation (NYSE:HRS) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
InterDigital pays an annual dividend of $1.20 per share and has a dividend yield of 1.7%. Harris Corporation pays an annual dividend of $2.12 per share and has a dividend yield of 1.8%. InterDigital pays out 13.0% of its earnings in the form of a dividend. Harris Corporation pays out 47.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. InterDigital has raised its dividend for 15 consecutive years.
Valuation & Earnings
This table compares InterDigital and Harris Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|InterDigital||$712.48 million||3.36||$534.85 million||$9.23||7.46|
|Harris Corporation||$5.90 billion||2.45||$1.38 billion||$4.43||26.80|
Harris Corporation has higher revenue and earnings than InterDigital. InterDigital is trading at a lower price-to-earnings ratio than Harris Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
68.5% of InterDigital shares are held by institutional investors. Comparatively, 83.6% of Harris Corporation shares are held by institutional investors. 1.9% of InterDigital shares are held by insiders. Comparatively, 1.7% of Harris Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for InterDigital and Harris Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
InterDigital presently has a consensus price target of $91.33, suggesting a potential upside of 32.56%. Harris Corporation has a consensus price target of $111.67, suggesting a potential downside of 5.93%. Given InterDigital’s higher possible upside, research analysts clearly believe InterDigital is more favorable than Harris Corporation.
Risk and Volatility
InterDigital has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Harris Corporation has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
This table compares InterDigital and Harris Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
InterDigital beats Harris Corporation on 9 of the 17 factors compared between the two stocks.
InterDigital Company Profile
InterDigital, Inc. designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc. (Hillcrest Labs) subsidiary, sensor and sensor fusion technology. It offers a range of technologies that are used in digital cellular and wireless products and networks, including second generation (2G), third generation (3G), fourth generation (4G) and IEEE 802-related products and networks. Products incorporating its inventions include mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; components, dongles and modules for wireless devices, and IoT devices and software platforms. The Company is developing a range of technologies in the areas of video compression and delivery, security, analytics, and other areas.
Harris Corporation Company Profile
Harris Corporation is a technology company that provides products, systems and services that have defense and civil government applications, as well as commercial applications. It offers its products and services to government and commercial customer. It operates in four segments: Communication Systems, which serves markets in tactical communications and defense, and public safety networks; Space and Intelligence Systems, which provides complete Earth observation, environmental, geospatial, space protection, and intelligence solutions from advanced sensors and payloads, as well as ground processing and information analytics; Electronic Systems, which offers a portfolio of solutions in electronic warfare, avionics, wireless and technology, among others, and Critical Networks, which provides managed services supporting air traffic management, energy and maritime communications, and ground network operation and sustainment, as well as information technology (IT) and engineering services.
Receive News & Ratings for InterDigital Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for InterDigital Inc. and related companies with MarketBeat.com's FREE daily email newsletter.