Financial Comparison: Inphi (IPHI) vs. Power Integrations (POWI)

Inphi (NYSE: IPHI) and Power Integrations (NASDAQ:POWI) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

This table compares Inphi and Power Integrations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inphi -16.27% 7.79% 3.55%
Power Integrations 13.69% 11.95% 10.73%

Insider and Institutional Ownership

97.3% of Power Integrations shares are owned by institutional investors. 3.6% of Inphi shares are owned by insiders. Comparatively, 4.3% of Power Integrations shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Inphi and Power Integrations, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inphi 0 3 10 0 2.77
Power Integrations 0 2 3 0 2.60

Inphi currently has a consensus target price of $45.00, indicating a potential upside of 17.31%. Power Integrations has a consensus target price of $81.00, indicating a potential upside of 4.99%. Given Inphi’s stronger consensus rating and higher possible upside, analysts plainly believe Inphi is more favorable than Power Integrations.

Valuation & Earnings

This table compares Inphi and Power Integrations’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inphi $266.28 million 6.13 $99.45 million ($1.35) -28.41
Power Integrations $387.39 million 5.92 $47.89 million $1.93 39.97

Inphi has higher earnings, but lower revenue than Power Integrations. Inphi is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Inphi has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Dividends

Power Integrations pays an annual dividend of $0.56 per share and has a dividend yield of 0.7%. Inphi does not pay a dividend. Power Integrations pays out 29.0% of its earnings in the form of a dividend.

Summary

Power Integrations beats Inphi on 10 of the 16 factors compared between the two stocks.

Inphi Company Profile

Inphi Corporation is a provider of analog and mixed signal semiconductor solutions for the communications and datacenter markets. The Company’s solutions provide an interface between analog signals and digital information in systems, such as telecommunications transport systems, enterprise networking equipment and datacenters. It is engaged in the design, development and sale of analog connectivity components that operate to maintain, amplify and manage signal integrity at high speeds in a range of applications. Its semiconductor solutions are designed to address bandwidth bottlenecks in networks and enable the rollout of communications and datacenter infrastructures. The Company provides 25 gigabit (G) to 600G high-speed analog semiconductor solutions for the communications market. As of December 31, 2016, the Company’s product portfolio included products that had commercially shipped, products for which the Company had shipped engineering samples and products under development.

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.

Receive News & Ratings for Inphi Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Inphi and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply