Head to Head Contrast: Analog Devices (ADI) versus Power Integrations (POWI)
Power Integrations (NASDAQ: POWI) and Analog Devices (NASDAQ:ADI) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Insider & Institutional Ownership
98.2% of Power Integrations shares are owned by institutional investors. Comparatively, 86.4% of Analog Devices shares are owned by institutional investors. 4.3% of Power Integrations shares are owned by insiders. Comparatively, 1.1% of Analog Devices shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Power Integrations pays an annual dividend of $0.56 per share and has a dividend yield of 0.7%. Analog Devices pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Power Integrations pays out 29.0% of its earnings in the form of a dividend. Analog Devices pays out 86.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Power Integrations and Analog Devices’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Power Integrations and Analog Devices’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Power Integrations||$387.39 million||6.10||$47.89 million||$1.93||41.22|
|Analog Devices||$3.42 billion||9.67||$861.66 million||$2.09||43.08|
Analog Devices has higher revenue and earnings than Power Integrations. Power Integrations is trading at a lower price-to-earnings ratio than Analog Devices, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Power Integrations has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Analog Devices has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Power Integrations and Analog Devices, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Power Integrations presently has a consensus target price of $81.33, suggesting a potential upside of 2.24%. Analog Devices has a consensus target price of $93.83, suggesting a potential upside of 4.22%. Given Analog Devices’ higher probable upside, analysts clearly believe Analog Devices is more favorable than Power Integrations.
Analog Devices beats Power Integrations on 10 of the 16 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.
Analog Devices Company Profile
Analog Devices, Inc. (Analog Devices) designs, manufactures and markets a portfolio of solutions that leverage high-performance analog, mixed-signal and digital signal processing technology, including integrated circuits (ICs), algorithms, software and subsystems. Its products include Analog Products, Converters, Amplifiers/Radio Frequency, Other Analog, Power Management and Reference, and Digital Signal Processing Products. The Company is a supplier of data converter products. The Company is a supplier of high-performance amplifiers. Its analog product line also includes products of high performance radio frequency (RF) ICs. The Company’s DSPs are used for high-speed numeric calculations. The Company offers its products for applications in various end markets, such as industrial, automotive, consumer and communications. The Company operates in the United States, Rest of North/South America, Europe, Japan and China.
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