Silicon Laboratories (SLAB) & Power Integrations (POWI) Critical Analysis
Silicon Laboratories (NASDAQ: SLAB) and Power Integrations (NASDAQ:POWI) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Power Integrations pays an annual dividend of $0.56 per share and has a dividend yield of 0.7%. Silicon Laboratories does not pay a dividend. Power Integrations pays out 29.0% of its earnings in the form of a dividend.
Silicon Laboratories has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Valuation & Earnings
This table compares Silicon Laboratories and Power Integrations’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Silicon Laboratories||$697.63 million||5.57||$61.49 million||$1.67||54.64|
|Power Integrations||$387.39 million||5.95||$47.89 million||$1.93||40.21|
Silicon Laboratories has higher revenue and earnings than Power Integrations. Power Integrations is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Silicon Laboratories and Power Integrations, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Silicon Laboratories currently has a consensus target price of $99.00, suggesting a potential upside of 8.49%. Power Integrations has a consensus target price of $81.33, suggesting a potential upside of 4.81%. Given Silicon Laboratories’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Silicon Laboratories is more favorable than Power Integrations.
This table compares Silicon Laboratories and Power Integrations’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
90.7% of Silicon Laboratories shares are owned by institutional investors. Comparatively, 97.6% of Power Integrations shares are owned by institutional investors. 34.8% of Silicon Laboratories shares are owned by company insiders. Comparatively, 4.3% of Power Integrations shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Silicon Laboratories beats Power Integrations on 9 of the 16 factors compared between the two stocks.
Silicon Laboratories Company Profile
Silicon Laboratories Inc. is a provider of silicon, software and solutions for the Internet of Things (IoT), Internet infrastructure, industrial, consumer and automotive markets. The Company operates through mixed-signal analog intensive products segment. It provides analog-intensive, mixed-signal solutions for use in a range of electronic products in various applications for the IoT market. It provides a range of timing and isolation products for infrastructure applications, including clocks and oscillators for networking equipment, data centers and wireless base stations, as well as digital isolators and current sensors for industrial power supplies and hybrid-electric vehicles. It provides broadcast products, such as television tuners and demodulators and automotive radio tuners, and access products, including subscriber line interface circuits for voice over Internet Protocol, embedded modems, and Power over Ethernet power source equipment and powered device integrated circuits.
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.
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