Impinj (NASDAQ:PI) vs. NXP Semiconductors (NASDAQ:NXPI) Head to Head Review

NXP Semiconductors (NASDAQ:NXPI) and Impinj (NASDAQ:PI) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Volatility and Risk

NXP Semiconductors has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Impinj has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.

Institutional & Insider Ownership

90.5% of NXP Semiconductors shares are held by institutional investors. 0.1% of NXP Semiconductors shares are held by company insiders. Comparatively, 6.8% of Impinj shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares NXP Semiconductors and Impinj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NXP Semiconductors	22.56%	27.83%	11.07%
Impinj	-7.26%	5.23%	2.09%

Analyst Ratings

This is a summary of current ratings and recommmendations for NXP Semiconductors and Impinj, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	1	9	16	0	2.58
Impinj	1	2	6	1	2.70

NXP Semiconductors presently has a consensus price target of $305.43, indicating a potential upside of 31.78%. Impinj has a consensus price target of $179.22, indicating a potential upside of 4.25%. Given NXP Semiconductors’ higher possible upside, equities research analysts plainly believe NXP Semiconductors is more favorable than Impinj.

Valuation & Earnings

This table compares NXP Semiconductors and Impinj”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXP Semiconductors	$12.27 billion	4.76	$2.02 billion	$11.72	19.78
Impinj	$361.08 million	14.54	-$10.85 million	($0.92)	-186.86

NXP Semiconductors has higher revenue and earnings than Impinj. Impinj is trading at a lower price-to-earnings ratio than NXP Semiconductors, indicating that it is currently the more affordable of the two stocks.

Summary

NXP Semiconductors beats Impinj on 10 of the 15 factors compared between the two stocks.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.

About Impinj

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.