STR (OTCMKTS: STRI) and Xperi (NASDAQ:XPER) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Valuation and Earnings

This table compares STR and Xperi’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
STR $20.11 million 0.29 -$15.87 million ($0.61) -0.49
Xperi $259.57 million 3.88 $56.08 million ($1.44) -14.17

Xperi has higher revenue and earnings than STR. Xperi is trading at a lower price-to-earnings ratio than STR, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for STR and Xperi, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STR 0 0 0 0 N/A
Xperi 0 1 1 0 2.50

Xperi has a consensus target price of $53.00, indicating a potential upside of 159.80%. Given Xperi’s higher possible upside, analysts plainly believe Xperi is more favorable than STR.

Profitability

This table compares STR and Xperi’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STR -63.78% -28.89% -24.24%
Xperi -22.54% 8.10% 3.38%

Risk and Volatility

STR has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Xperi has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of STR shares are owned by institutional investors. Comparatively, 99.6% of Xperi shares are owned by institutional investors. 10.3% of STR shares are owned by insiders. Comparatively, 2.4% of Xperi shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Xperi pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. STR does not pay a dividend. Xperi pays out -55.6% of its earnings in the form of a dividend.

Summary

Xperi beats STR on 12 of the 14 factors compared between the two stocks.

STR Company Profile

STR Holdings, Inc. is a holding company. The Company is a provider of encapsulants to the solar industry. Encapsulant is a component used to protect solar cells and hold solar modules together. The Company has developed ethylene-vinyl acetate (EVA)-based encapsulants for use in commercial solar module manufacturing. The Company’s encapsulant formulations offer a range of properties and processing attributes, including various curing times and temperatures that align with the requirements of its customers’ individual lamination processes and module constructions. The Company’s formulations can be used in both crystalline silicon and thin-film modules. The Company operates production facilities in Llanera, Asturias, Spain and Shajiabang, Changshu, Jiangsu Province, China. It has a total annual production capacity of approximately 5.1 gigawatts. Its customers are solar module manufacturers located mainly in North America, Europe and Asia.

Xperi Company Profile

Tessera Holding Corporation is a product and technology licensing company. The Company’s technologies and intellectual property are deployed, in areas, such as audio, computational imaging, computer vision, mobile computing and communications, memory, data storage, three dimensional (3D) semiconductor interconnect and packaging. The Company delivers smart sight and sound solutions, and 3D semiconductor interconnect solutions for mobile devices, consumer electronics, and automotive markets. The Company also addresses technologies, such as Internet of Things (IoT) and augmented reality/virtual reality (AR/VR). It offers audio solutions for mobile devices, home theater systems and cinema. The Company’s subsidiaries include Tessera Technologies, Inc., DTS, Inc., Invensas Corporation and FotoNation.

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