Contrasting Transphorm (OTCMKTS:TGAN) & Solitron Devices (OTCMKTS:SODI)

Transphorm (OTCMKTS:TGAN) and Solitron Devices (OTCMKTS:SODI) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Valuation & Earnings

This table compares Transphorm and Solitron Devices’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transphorm	$18.76 million	16.85	-$30.60 million	($0.69)	-7.39
Solitron Devices	N/A	N/A	N/A	$0.32	56.36

Solitron Devices has lower revenue, but higher earnings than Transphorm. Transphorm is trading at a lower price-to-earnings ratio than Solitron Devices, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

66.4% of Transphorm shares are owned by institutional investors. Comparatively, 15.3% of Solitron Devices shares are owned by institutional investors. 2.5% of Transphorm shares are owned by company insiders. Comparatively, 27.0% of Solitron Devices shares are owned by company 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.

Profitability

This table compares Transphorm and Solitron Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transphorm	-189.65%	-114.30%	-65.96%
Solitron Devices	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Transphorm and Solitron Devices, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transphorm	0	0	0	0	N/A
Solitron Devices	0	0	0	0	N/A

Summary

Solitron Devices beats Transphorm on 6 of the 8 factors compared between the two stocks.

About Transphorm

Transphorm, Inc., a semiconductor company, develops, manufactures, and sells gallium nitride (GaN) semiconductor components for high voltage power conversion applications in Mainland China, Hong Kong, Taiwan, the United States, Japan, South Korea, India, and Europe. The company's products include GaN field effect transistors in various packages. Its GaN devices allows customers to design power systems creating functional value in various end products, including smartphone power adapters/fast-chargers, power supplies for datacenter servers/communication, industrial power converters, chargers/converters/inverters for electric vehicles, and other applications. The company offers its products through regional distributors and sales representatives. Transphorm, Inc. was founded in 2007 and is headquartered in Goleta, California.

About Solitron Devices

Solitron Devices, Inc. designs, develops, manufactures, and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The company offers various bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field effect transistors, field effect transistors, and other related products. It also provides joint army/navy transistors, diodes, and standard military drawings voltage regulators. The company's semiconductor products are used as components of military, commercial, and aerospace electronic equipment, such as ground and airborne radar systems, power distribution systems, missiles, missile control systems, satellites, and space applications, as well as for non-military, scientific, and industrial applications. It operates in the United States, Canada, Latin America, the Far East, and the Middle East. The company was incorporated in 1959 and is headquartered in West Palm Beach, Florida.