Xilinx (XLNX) vs. Power Integrations (POWI) Critical Comparison
Power Integrations (NASDAQ: POWI) and Xilinx (NASDAQ:XLNX) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
95.4% of Power Integrations shares are held by institutional investors. Comparatively, 97.4% of Xilinx shares are held by institutional investors. 4.3% of Power Integrations shares are held by company insiders. Comparatively, 0.4% of Xilinx 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.
Power Integrations pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Xilinx pays an annual dividend of $1.40 per share and has a dividend yield of 1.9%. Power Integrations pays out 29.9% of its earnings in the form of a dividend. Xilinx pays out 60.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Xilinx has raised its dividend for 6 consecutive years. Xilinx is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Power Integrations and Xilinx’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Power Integrations and Xilinx’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Power Integrations||$414.04 million||5.28||$75.89 million||$1.87||39.25|
|Xilinx||$2.39 billion||7.57||$755.86 million||$2.33||31.25|
Xilinx has higher revenue and earnings than Power Integrations. Xilinx is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Power Integrations has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Xilinx has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Power Integrations and Xilinx, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Power Integrations currently has a consensus target price of $81.33, indicating a potential upside of 10.81%. Xilinx has a consensus target price of $65.63, indicating a potential downside of 9.86%. Given Power Integrations’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Power Integrations is more favorable than Xilinx.
Xilinx beats Power Integrations on 11 of the 17 factors compared between the two stocks.
About Power Integrations
Power Integrations, Inc. designs, develops and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source to the type of power required for downstream use. The Company’s ICs used in alternating current (AC)-direct current (DC) power supply convert high-voltage AC from a wall outlet to the low-voltage DC required by electronic devices. The Company offers a range of products, such as TOPSwitch, TinySwitch, LinkSwitch and Hiper families. The Company also offers CapZero and SenZero families. The Company offers a range of high-voltage gate-driver products sold under the SCALE and SCALE-II product-family names. The DPA-Switch family of products is a monolithic high-voltage DC-DC power conversion IC designed specifically for use in distributed power architectures.
Xilinx, Inc. (Xilinx) is engaged in designing and developing programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (ICs) in the form of programmable logic devices (PLDs), including programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and various third-party verification and IP cores. The Company provides design services, customer training, field engineering and technical support. Its PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs) that its customers program to perform desired logic functions, and programmable SoCs, which combine (Advanced reduced instruction set computing (RISC) Machines (ARM)) processor-based systems with programmable logic in a single device.
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