Inphi (NYSE:IPHI) versus SunPower (NYSE:SPWR) Financial Survey

Inphi (NYSE:IPHI) and SunPower (NASDAQ:SPWR) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Inphi and SunPower’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inphi -26.31% -0.78% -0.32%
SunPower -12.95% -83.67% -7.49%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Inphi and SunPower, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inphi 1 2 9 0 2.67
SunPower 4 3 2 0 1.78

Inphi presently has a consensus price target of $56.17, indicating a potential downside of 13.15%. SunPower has a consensus price target of $7.79, indicating a potential downside of 39.50%. Given Inphi’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Inphi is more favorable than SunPower.

Valuation and Earnings

This table compares Inphi and SunPower’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inphi $294.49 million 9.97 -$95.75 million ($0.57) -113.46
SunPower $1.73 billion 1.06 -$811.09 million ($0.88) -14.64

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

Risk & Volatility

Inphi has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, SunPower has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500.

Institutional & Insider Ownership

27.8% of SunPower shares are held by institutional investors. 3.3% of Inphi shares are held by insiders. Comparatively, 1.0% of SunPower shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Inphi beats SunPower on 9 of the 13 factors compared between the two stocks.

About Inphi

Inphi Corporation provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter, and computing markets worldwide. Its analog and mixed signal semiconductor solutions offer high signal integrity at various data speeds and reduce system power consumption. The company's semiconductor solutions address bandwidth bottlenecks in networks, maximize throughput and minimize latency in computing environments, and enable the rollout of communications and datacenter infrastructures. Its solutions provide a high-speed interface between analog and mixed signals, and digital information in high-performance systems, such as telecommunications transport systems, enterprise networking equipment, and datacenters. The company also provides 25G to 600G high-speed analog and mixed semiconductor solutions for the communications market. Its products perform a range of functions, such as amplifying, encoding, multiplexing, demultiplexing, and retiming signals at speeds up to 400 Gbps. Inphi Corporation sells its products directly through its sales force, as well as through a network of sales representatives and distributors to original equipment manufacturers. The company was formerly known as TCom Communications, Inc. and changed its name to Inphi Corporation in February 2001. Inphi Corporation was incorporated in 2000 and is headquartered in Santa Clara, California.

About SunPower

SunPower Corporation researches, develops, manufactures, and delivers solar solutions worldwide. It operates through three segments: Residential, Commercial, and Power Plant. The company provides solar power components, including panels and system components, primarily to dealers, system integrators, and distributors. It also offers commercial rooftop and ground-mounted solar power systems, and residential mounting systems. In addition, the company provides post-installation operations and maintenance services. Further, it leases solar power systems to residential customers; and sells inverters manufactured by third parties. The company also serves investors, financial institutions, project developers, electric utilities, independent power producers, commercial and governmental entities, production home builders, residential owners, and small commercial building owners. The company was incorporated in 1985 and is headquartered in San Jose, California. SunPower Corporation is a subsidiary of Total Solar International SAS.

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