Head-To-Head Comparison: Texas Instruments (NASDAQ:TXN) & Ideal Power (NASDAQ:IPWR)

Texas Instruments (NASDAQ:TXN) and Ideal Power (NASDAQ:IPWR) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Texas Instruments and Ideal Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Instruments	$16.05 billion	11.45	$4.80 billion	$5.27	38.39
Ideal Power	$19,296.00	2,098.25	-$9.95 million	($1.21)	-4.01

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

Profitability

This table compares Texas Instruments and Ideal Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Instruments	30.68%	28.08%	13.64%
Ideal Power	-7,152.45%	-55.69%	-49.80%

Insider and Institutional Ownership

85.0% of Texas Instruments shares are held by institutional investors. Comparatively, 16.4% of Ideal Power shares are held by institutional investors. 0.6% of Texas Instruments shares are held by insiders. Comparatively, 5.4% of Ideal Power shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Texas Instruments and Ideal Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Instruments	4	12	9	2	2.33
Ideal Power	0	1	0	0	2.00

Texas Instruments presently has a consensus target price of $189.86, indicating a potential downside of 6.14%. Given Texas Instruments’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Texas Instruments is more favorable than Ideal Power.

Risk and Volatility

Texas Instruments has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Ideal Power has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Summary

Texas Instruments beats Ideal Power on 12 of the 15 factors compared between the two stocks.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

About Ideal Power

Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.