Power Integrations (POWI) vs. Atomera (ATOM) Head-To-Head Analysis

Power Integrations (NASDAQ:POWI) and Atomera (NASDAQ:ATOM) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Dividends

Power Integrations pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. Atomera does not pay a dividend. Power Integrations pays out 28.1% of its earnings in the form of a dividend. Power Integrations has raised its dividend for 6 consecutive years.

Insider & Institutional Ownership

99.4% of Power Integrations shares are owned by institutional investors. Comparatively, 19.4% of Atomera shares are owned by institutional investors. 4.0% of Power Integrations shares are owned by company insiders. Comparatively, 9.1% of Atomera shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Power Integrations and Atomera, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Integrations 0 4 1 0 2.20
Atomera 0 0 2 0 3.00

Power Integrations presently has a consensus target price of $78.50, indicating a potential upside of 23.39%. Atomera has a consensus target price of $9.00, indicating a potential upside of 186.62%. Given Atomera’s stronger consensus rating and higher probable upside, analysts clearly believe Atomera is more favorable than Power Integrations.

Risk and Volatility

Power Integrations has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Atomera has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Power Integrations 7.04% 13.46% 11.88%
Atomera N/A -94.91% -88.01%

Valuation & Earnings

This table compares Power Integrations and Atomera’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Power Integrations $431.76 million 4.32 $27.60 million $2.28 27.90
Atomera $110,000.00 429.04 -$13.06 million ($1.08) -2.91

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

Summary

Power Integrations beats Atomera on 10 of the 17 factors compared between the two stocks.

Power Integrations Company Profile

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.

Atomera Company Profile

Atomera Incorporated engages in the business of developing, commercializing, and licensing proprietary processes and technologies for the semiconductor industry. Its lead technology is Mears Silicon Technology, a thin-film of reengineered silicon that can be applied as a transistor channel enhancement to CMOS-type transistors. The company was formerly known as Mears Technologies, Inc. and changed its name to Atomera Incorporated in January 2016. Atomera Incorporated was founded in 2001 and is headquartered in Los Gatos, California.

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