ANADIGICS (NASDAQ: ANAD) and NeoPhotonics Corporation (NYSE:NPTN) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ANADIGICS and NeoPhotonics Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANADIGICS 0 0 0 0 N/A
NeoPhotonics Corporation 0 2 5 1 2.88

NeoPhotonics Corporation has a consensus target price of $9.97, indicating a potential upside of 71.28%. Given NeoPhotonics Corporation’s higher probable upside, analysts clearly believe NeoPhotonics Corporation is more favorable than ANADIGICS.

Profitability

This table compares ANADIGICS and NeoPhotonics Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANADIGICS -49.89% -97.40% -69.35%
NeoPhotonics Corporation -7.28% -9.43% -5.36%

Institutional & Insider Ownership

85.3% of NeoPhotonics Corporation shares are owned by institutional investors. 17.3% of NeoPhotonics Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares ANADIGICS and NeoPhotonics Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ANADIGICS N/A N/A N/A N/A N/A
NeoPhotonics Corporation $358.05 million 0.71 $338,000.00 ($0.62) -9.39

NeoPhotonics Corporation has higher revenue and earnings than ANADIGICS.

Summary

NeoPhotonics Corporation beats ANADIGICS on 9 of the 9 factors compared between the two stocks.

About ANADIGICS

ANADIGICS, Inc. is engaged in the designing and manufacturing of radio frequency (RF) semiconductor solutions for infrastructure and mobile communications and data transmission markets. The Company’s product portfolio includes line amplifiers, reverse path amplifiers, power amplifiers (PAs) and front-end integrated circuits (FEIC). The Company designs, develops, and manufactures RFIC’s primarily using GaAs compound semiconductor substrates with various process technologies, including metal semiconductor field effect transistor (MESFET), pseudomorphic high-electron-mobility transistor (pHEMT) and heterojunction bipolar transistor (HBT). The Company’s InGaP-Plus technology, combines InGaP HBT and pHEMT processes on a single substrate and integrates the PA function and the RF active switch function on the same die. Additionally, the Company offers VCSEL process technology. The Company fabricates its ICs in its six-inch diameter GaAs wafer fabrication facility.

About NeoPhotonics Corporation

NeoPhotonics Corporation develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks. The Company develops and manufactures Transmitter Products, Receiver Products and Switch Products that are used in ultra-high speed digital optical communications, high speed switching and provisioning, and access connections for wireless and fiber-to-the-home communications networks. The Company’s products are categorized into groups, including High Speed Products and Network Products and Solutions. The High Speed Products includes products designed for 100G and beyond for telecommunication and datacenter or content provider networks and applications. Its Network Products and Solutions consist of various products designed for applications below 100G, and include 40G products. The Company combines its transmitter and receiver products into Transceiver modules.

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