Critical Contrast: Everspin Tech (NASDAQ:MRAM) versus Power Integrations (NASDAQ:POWI)

Everspin Tech (NASDAQ:MRAM – Get Free Report) and Power Integrations (NASDAQ:POWI – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Volatility & Risk

Everspin Tech has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Everspin Tech and Power Integrations, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everspin Tech 1 0 2 0 2.33
Power Integrations 0 4 5 0 2.56

Everspin Tech presently has a consensus target price of $22.00, suggesting a potential upside of 79.59%. Power Integrations has a consensus target price of $58.57, suggesting a potential upside of 32.57%. Given Everspin Tech’s higher probable upside, research analysts clearly believe Everspin Tech is more favorable than Power Integrations.

Profitability

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

Net Margins Return on Equity Return on Assets
Everspin Tech -14.28% 9.67% 7.98%
Power Integrations 9.81% 7.36% 6.44%

Institutional & Insider Ownership

44.7% of Everspin Tech shares are owned by institutional investors. 6.3% of Everspin Tech shares are owned by insiders. Comparatively, 1.2% of Power Integrations shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Everspin Tech and Power Integrations”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everspin Tech $55.20 million 5.40 -$590,000.00 ($0.40) -30.62
Power Integrations $443.50 million 5.57 $22.09 million $0.79 55.92

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

Summary

Power Integrations beats Everspin Tech on 8 of the 14 factors compared between the two stocks.

About Everspin Tech

(Get Free Report)

Everspin Technologies, Inc. develops and supplies magnetoresistive random-access memory (MRAM), a nonvolatile memory technology that retains data when power is removed. The company’s products include discrete MRAM devices and embedded MRAM technology for integration into customer chips and systems. Its offerings include toggle MRAM and spin-transfer torque MRAM, designed for applications that need persistent data storage, fast access or frequent write cycles. Everspin serves markets including industrial automation, automotive, enterprise storage, aerospace and defense.

About Power Integrations

(Get Free Report)

Power Integrations, Inc. designs and markets semiconductor technologies used in high-voltage power conversion. Its products include integrated circuits, power switches, diodes and gate drivers that help convert and control electricity in electronic systems. The company’s products are used in applications such as consumer electronics, appliances, industrial equipment, communications systems, electric vehicles and renewable-energy installations. Its EcoSmart technology is designed to improve energy efficiency in power supplies and other power-conversion applications.

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