Financial Analysis: Entropic Communications (ENTR) vs. O2Micro International (OIIM)

Entropic Communications (NASDAQ: ENTR) and O2Micro International (NASDAQ:OIIM) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Entropic Communications and O2Micro International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entropic Communications 0 0 0 0 N/A
O2Micro International 0 1 0 0 2.00

O2Micro International has a consensus price target of $3.50, suggesting a potential upside of 110.84%.

Profitability

This table compares Entropic Communications and O2Micro International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entropic Communications -10.45% -11.67% -9.68%
O2Micro International -6.99% -4.05% -3.62%

Institutional & Insider Ownership

39.9% of O2Micro International shares are held by institutional investors. 8.0% of O2Micro International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Entropic Communications and O2Micro International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entropic Communications N/A N/A N/A ($0.89) N/A
O2Micro International $56.56 million 0.75 -$2.98 million ($0.17) -9.76

Entropic Communications has higher earnings, but lower revenue than O2Micro International. O2Micro International is trading at a lower price-to-earnings ratio than Entropic Communications, indicating that it is currently the more affordable of the two stocks.

Summary

O2Micro International beats Entropic Communications on 8 of the 8 factors compared between the two stocks.

About Entropic Communications

Entropic Communications, Inc. (Entropic) is a fabless semiconductor company. Entropic designs, develops and markets semiconductor solutions to enable home entertainment. The Company offers a portfolio of set-top box (STB), Video System-on-a-Chip (SoC) and home connectivity (Connectivity) solutions. Entropic’s Connectivity solutions enable access to broadcast and Internet Protocol television (IPTV) services, as well as deliver and distribute other media content, such as movies, music, games and photos across the home. The Company’s Connectivity solutions include home networking solutions based on the Multimedia over Coax Alliance (MoCA) standard, high-speed broadband access solutions and Direct Broadcast Satellite outdoor unit (DBS ODU) solutions. Entropic’s STB product portfolio consists of a range of digital STB components and system solutions for the satellite, terrestrial, cable and IPTV markets across the world.

About O2Micro International

O2Micro International Limited designs, develops and markets power management components for the Computer, Consumer, Industrial, Automotive and Communications markets. The Company’s power management products include integrated circuits (ICs) for liquid crystal display (LCD) and light emitting diode (LED) lighting; control and monitoring of battery charging and discharging; direct current (DC)/DC and alternating current (AC)/DC conversion, and provide select and switch functionality between power sources. It offers a range of products, including desktop and notebook monitors, portable media players, digital cameras, battery management systems for power tools, electric bikes, low emission vehicles (LEV) applications, industrial personal computers (PCs), portable media devices, smart phones, personal digital assistants (PDAs), global positioning system (GPS) units for navigational assistance in vehicles and electric and hybrid vehicle (EV/HEV) battery management.

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

Leave a Reply