Peregrine Semiconductor (NASDAQ: PSMI) and O2Micro International (NASDAQ:OIIM) are both small-cap integrated circuits companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Earnings & Valuation

This table compares Peregrine Semiconductor and O2Micro International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Peregrine Semiconductor N/A N/A N/A ($0.79) -15.76
O2Micro International $56.56 million 0.86 -$2.98 million ($0.17) -11.12

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

Institutional and Insider Ownership

40.0% of O2Micro International shares are owned by institutional investors. 8.0% of O2Micro International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Peregrine Semiconductor and O2Micro International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peregrine Semiconductor 0 0 0 0 N/A
O2Micro International 0 1 0 0 2.00

O2Micro International has a consensus price target of $3.50, indicating a potential upside of 85.19%. Given O2Micro International’s higher probable upside, analysts plainly believe O2Micro International is more favorable than Peregrine Semiconductor.

Profitability

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

Net Margins Return on Equity Return on Assets
Peregrine Semiconductor N/A N/A N/A
O2Micro International -6.99% -4.05% -3.62%

Summary

O2Micro International beats Peregrine Semiconductor on 5 of the 8 factors compared between the two stocks.

About Peregrine Semiconductor

Peregrine Semiconductor Corporation (Peregrine) is engaged in the design, manufacturing and marketing radio frequency integrated circuits (RFICs) for the aerospace and defense, broadband, industrial, mobile wireless device, test and measurement equipment, and wireless infrastructure markets. The Company is provider of RFICs. Its products include RF switches-antenna, RFswitches-broadband and general purpose, digital attenuators, synthesizers, mixers/upconverters, prescalers, variable gain amplifiers, digitally tunable capacitors, DC-DC converters and power amplifiers. Its UltraCMOS technology enables the design, manufacture, and integration of multiple radio frequency (RF), mixed signal, and digital functions on a single chip. Its solutions target a range of applications in the aerospace and defense, broadband, industrial, mobile wireless device, test and measurement equipment, and wireless infrastructure markets.

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.

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