Head to Head Review: Supertex (SUPX) & ARM (ARMH)

Supertex (NASDAQ: SUPX) and ARM (NASDAQ:ARMH) are both semiconductors – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Earnings & Valuation

This table compares Supertex and ARM’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Supertex N/A N/A N/A $0.85 N/A
ARM N/A N/A N/A $0.96 70.59

Supertex is trading at a lower price-to-earnings ratio than ARM, indicating that it is currently the more affordable of the two stocks.

Dividends

ARM pays an annual dividend of $0.34 per share and has a dividend yield of 0.5%. Supertex does not pay a dividend. ARM pays out 35.4% of its earnings in the form of a dividend.

Profitability

This table compares Supertex and ARM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Supertex N/A N/A N/A
ARM 33.10% 19.72% 16.87%

Analyst Recommendations

This is a summary of recent ratings for Supertex and ARM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Supertex 0 0 0 0 N/A
ARM 0 0 1 0 3.00

Insider & Institutional Ownership

19.7% of ARM shares are owned by institutional investors. 3.0% of ARM shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

ARM beats Supertex on 8 of the 9 factors compared between the two stocks.

About Supertex

Supertex, Inc. is a producer of high voltage analog and mixed signal semiconductor components. The Company designs, develops, manufactures, and markets integrated circuits (ICs), utilizing high voltage DMOS, HVCMOS and HVBiCMOS analog and mixed signal technologies. These ICs are used in the medical ultrasound imaging, light emitting diodes (LED) backlighting for monitors and liquid-crystal display (LCD) television (TVs), LED general lighting, telecommunications, printer, flat panel display, industrial and consumer product industries. It markets and sells its products through direct sales personnel, independent sales representatives and distributors in the United States and abroad, to original equipment manufacturers (OEM’s) of electronic products. The Company operates in one business segment consisting of the design, development, manufacturing and marketing of high voltage analog and mixed signal integrated circuits.

About ARM

ARM Holdings plc (ARM) is a company engaged in designing a range of inter-related intellectual property (IP), including microprocessors, Physical IP, and supporting software and tools. Its product offering includes 16/32/64-bit reduced instruction set computing (RISC) microprocessors, data engines, graphics processors, digital libraries, embedded memories, peripherals, software and development tools, as well as analog functions and high-speed connectivity products. The Company licenses and sells its technology and products to international electronics companies, which in turn manufacture, market and sell microprocessors, application-specific integrated circuits (ASICs), application-specific standard processors (ASSPs) and microcontrollers (MCUs) based on ARM’s technology to systems companies for incorporation into a range of end products. Its principal geographic markets are Europe, the United States and Asia Pacific.

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