Contrasting TranSwitch (OTCMKTS:TXCCQ) & Navitas Semiconductor (NASDAQ:NVTS)

Navitas Semiconductor (NASDAQ:NVTS) and TranSwitch (OTCMKTS:TXCCQ) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

46.1% of Navitas Semiconductor shares are held by institutional investors. 29.9% of Navitas Semiconductor shares are held by insiders. Comparatively, 6.3% of TranSwitch shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Navitas Semiconductor has a beta of 3.14, indicating that its share price is 214% more volatile than the S&P 500. Comparatively, TranSwitch has a beta of 22.56, indicating that its share price is 2,156% more volatile than the S&P 500.

Profitability

This table compares Navitas Semiconductor and TranSwitch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-220.85%	-14.86%	-13.13%
TranSwitch	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Navitas Semiconductor and TranSwitch, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	2	5	2	0	2.00
TranSwitch	0	0	0	0	0.00

Navitas Semiconductor presently has a consensus price target of $6.48, indicating a potential downside of 17.20%. Given TranSwitch’s higher possible upside, analysts clearly believe TranSwitch is more favorable than Navitas Semiconductor.

Earnings & Valuation

This table compares Navitas Semiconductor and TranSwitch”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$83.30 million	21.67	-$84.60 million	($0.64)	-12.23
TranSwitch	N/A	N/A	N/A	N/A	N/A

TranSwitch has lower revenue, but higher earnings than Navitas Semiconductor.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

About TranSwitch

TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.