Power Integrations (NASDAQ:POWI) and Everspin Tech (NASDAQ:MRAM) Head to Head Review

Power Integrations (NASDAQ:POWI) and Everspin Tech (NASDAQ:MRAM) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Power Integrations and Everspin Tech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Integrations	0	4	4	0	2.50
Everspin Tech	1	0	2	0	2.33

Power Integrations currently has a consensus target price of $59.67, suggesting a potential upside of 34.72%. Everspin Tech has a consensus target price of $22.00, suggesting a potential upside of 70.28%. Given Everspin Tech’s higher probable upside, analysts clearly believe Everspin Tech is more favorable than Power Integrations.

Profitability

This table compares Power Integrations and Everspin Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Integrations	9.81%	7.42%	6.47%
Everspin Tech	-14.28%	9.67%	7.98%

Institutional and Insider Ownership

44.7% of Everspin Tech shares are owned by institutional investors. 1.2% of Power Integrations shares are owned by insiders. Comparatively, 6.3% of Everspin Tech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Power Integrations has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Everspin Tech has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.

Earnings and Valuation

This table compares Power Integrations and Everspin Tech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Integrations	$443.50 million	5.58	$22.09 million	$0.79	56.06
Everspin Tech	$55.20 million	5.70	-$590,000.00	($0.40)	-32.30

Power Integrations has higher revenue and earnings than Everspin Tech. Everspin Tech is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.

About Power Integrations

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. It also offers high-voltage diodes; InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, the company provides motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.

About Everspin Tech

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.