Maxim Integrated Products (NASDAQ: MXIM) and Integrated Device Technology (NASDAQ:IDTI) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
This table compares Maxim Integrated Products and Integrated Device Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Maxim Integrated Products||16.08%||32.59%||15.75%|
|Integrated Device Technology||-0.33%||20.26%||11.52%|
Maxim Integrated Products has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Integrated Device Technology has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Maxim Integrated Products and Integrated Device Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Maxim Integrated Products||0||13||7||0||2.35|
|Integrated Device Technology||1||2||11||0||2.71|
Maxim Integrated Products presently has a consensus target price of $55.05, suggesting a potential downside of 11.48%. Integrated Device Technology has a consensus target price of $33.69, suggesting a potential upside of 5.06%. Given Integrated Device Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Integrated Device Technology is more favorable than Maxim Integrated Products.
Insider & Institutional Ownership
97.2% of Integrated Device Technology shares are held by institutional investors. 1.1% of Maxim Integrated Products shares are held by company insiders. Comparatively, 1.2% of Integrated Device Technology shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Maxim Integrated Products pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. Integrated Device Technology does not pay a dividend. Maxim Integrated Products pays out 75.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Integrated Device Technology has increased its dividend for 8 consecutive years.
Valuation and Earnings
This table compares Maxim Integrated Products and Integrated Device Technology’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Maxim Integrated Products||$2.30 billion||5.91||$571.61 million||$2.22||28.01|
|Integrated Device Technology||$728.24 million||5.83||$110.48 million||$0.73||43.93|
Maxim Integrated Products has higher revenue and earnings than Integrated Device Technology. Maxim Integrated Products is trading at a lower price-to-earnings ratio than Integrated Device Technology, indicating that it is currently the more affordable of the two stocks.
Integrated Device Technology beats Maxim Integrated Products on 9 of the 17 factors compared between the two stocks.
Maxim Integrated Products Company Profile
Maxim Integrated Products, Inc. is engaged in designing, developing, manufacturing and marketing a range of linear and mixed-signal integrated circuits, referred to as analog circuits. The Company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The Company caters to automotive, communications and data center, computing, consumer and industrial markets. It offers a range of products, such as switching regulators, battery management, isolated power, charge pumps, linear regulators, light emitting diode (LED) drivers, motor driver integrated circuits (ICs), monitors and sequencers, transceivers, controllers and expanders, level translators, signal line protection ICs, broadband switches, powerline communications, real-time clocks, embedded security, microcontrollers, 1-Wire, iButton, data loggers, clock generation and distribution, memory products, optical, signal integrity, high-speed signaling, and display power and control.
Integrated Device Technology Company Profile
Integrated Device Technology, Inc. develops system-level solutions that optimize its customers’ applications. The Company operates through two segments: the Communications, and the Computing, Consumer and Industrial. It offers products in radio frequency (RF), timing, wireless power transfer, serial switching, interfaces and sensing solutions. It offers a range of mixed-signal solutions for the communications, computing, consumer, automotive and industrial segments. These products are used for development in areas, such as fourth generation (4G) infrastructure, network communications, cloud datacenters and power management for computing and mobile devices. It offers solutions in designing communications, computing, consumer, automotive and industrial applications. It markets its products to original equipment manufacturers (OEMs) through a range of channels, including direct sales, distributors and electronic manufacturing suppliers (EMSs).
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