STMicroelectronics (STM) versus Power Integrations (POWI) Financial Analysis
STMicroelectronics (NYSE:STM) and Power Integrations (NASDAQ:POWI) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
This is a summary of current recommendations for STMicroelectronics and Power Integrations, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares STMicroelectronics and Power Integrations’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|STMicroelectronics||$8.35 billion||1.59||$802.00 million||$0.98||15.11|
|Power Integrations||$431.76 million||3.92||$27.60 million||$2.28||25.33|
STMicroelectronics has higher revenue and earnings than Power Integrations. STMicroelectronics is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.
This table compares STMicroelectronics and Power Integrations’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
4.1% of STMicroelectronics shares are owned by institutional investors. Comparatively, 97.9% of Power Integrations shares are owned by institutional investors. 4.0% of Power Integrations shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility and Risk
STMicroelectronics has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Power Integrations pays an annual dividend of $0.64 per share and has a dividend yield of 1.1%. STMicroelectronics pays out 20.4% of its earnings in the form of a dividend. Power Integrations pays out 28.1% 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. Power Integrations has raised its dividend for 5 consecutive years. STMicroelectronics is clearly the better dividend stock, given its higher yield and lower payout ratio.
STMicroelectronics beats Power Integrations on 10 of the 17 factors compared between the two stocks.
STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide. It operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The company offers a range of products, including discrete and standard commodity components, application-specific integrated circuits, full-custom and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications, as well as silicon chips and smartcards. It also provides subsystems, and assembly and other services. The company sells its products through its distributors and retailers, as well as through sales representatives. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.
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 offers a range of alternating current to direct current (DC) power conversion products that address power supply ranging from less than 1 watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, liquid-crystal-display monitors, main and standby power supplies for desktop computers and TVs, light-emitting diode lamps, and other consumer and industrial applications. It also provides high-voltage diodes; and high-voltage gate-driver products under the SCALE and SCALE-2 product-family names. In addition, the company offers monolithic high-voltage DC-DC power conversion ICs designed for use in power-over-Ethernet powered devices, such as voice-over-IP phones and security cameras, as well as network hubs, line cards, servers, digital PBX phones, and DC-DC converter modules and industrial controls. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct staff, as well as through a network of independent sales representatives and distributors worldwide. Power Integrations, Inc. was founded in 1988 and is headquartered in San Jose, California.
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