Head to Head Review: IXYS (IXYS) & Microsemi Communications (VTSS)

IXYS (NASDAQ: IXYS) and Microsemi Communications (NASDAQ:VTSS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares IXYS and Microsemi Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IXYS $322.12 million 2.52 $21.34 million $0.73 33.70
Microsemi Communications N/A N/A N/A ($0.28) -18.86

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

Profitability

This table compares IXYS and Microsemi Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IXYS 6.99% 8.73% 6.04%
Microsemi Communications -20.36% -69.40% -23.46%

Analyst Recommendations

This is a breakdown of current ratings and price targets for IXYS and Microsemi Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IXYS 0 0 0 0 N/A
Microsemi Communications 0 0 0 0 N/A

Insider & Institutional Ownership

63.0% of IXYS shares are held by institutional investors. 23.6% of IXYS shares are held by 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.

Risk & Volatility

IXYS has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Microsemi Communications has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Summary

IXYS beats Microsemi Communications on 8 of the 9 factors compared between the two stocks.

IXYS Company Profile

IXYS Corporation (IXYS) is a multi-market integrated semiconductor company. The Company is engaged in the development, manufacture and marketing of power semiconductors, mixed-signal integrated circuits (ICs), application specific integrated circuits (ASICs), microcontrollers, systems and radio frequency (RF) power semiconductors. Its power semiconductors are sold separately and are also packaged in high power modules that consist of multiple semiconductor dies. Its power metal-oxide-silicon (MOS) transistors operate at greater switching speeds than bipolar transistors. Its ICs address the demand for analog, mixed-signal and digital interface solutions in communication and other industries and include microcontrollers, mixed-signal application-specific ICs. RF power devices switch electricity at the high rates necessary to enable the amplification or reception of radio frequencies. It manufactures and sells laser diode drivers, high voltage pulse generators and modulators.

Microsemi Communications Company Profile

Vitesse Semiconductor Corporation supplies high-performance integrated circuits used by manufacturers of networking systems for Carrier and Enterprise networking applications. The Company designs, develops and markets a diverse networking and connectivity IC solutions. The Company develops and manufactures variety of products that are marketed to Carrier and Enterprise networking, as well as data center infrastructure original equipment manufacturers. The Company’s product lines include Ethernet Switching Product Line that addresses Gigabit Ethernet and 10 Gigabit Ethernet applications in Carrier and Enterprise markets; Connectivity Product Line includes mixed-signal physical layer devices for connection of systems via optical fiber, copper cable, or backplanes and Transport Processing Product Line addresses the needs of Carrier network providers as they undergo a migration to new Ethernet packet-based networks.

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