Critical Comparison: Diodes (NASDAQ:DIOD) vs. Atomera (NASDAQ:ATOM)

Diodes (NASDAQ:DIOD) and Atomera (NASDAQ:ATOM) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Earnings & Valuation

This table compares Diodes and Atomera’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Diodes $1.21 billion 1.93 $104.02 million $2.38 19.33
Atomera $250,000.00 178.89 -$12.90 million ($1.02) -2.57

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

Insider and Institutional Ownership

85.6% of Diodes shares are owned by institutional investors. Comparatively, 20.3% of Atomera shares are owned by institutional investors. 5.3% of Diodes shares are owned by company insiders. Comparatively, 8.3% of Atomera shares are owned by company 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.

Volatility and Risk

Diodes has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Atomera has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Diodes 10.74% 14.60% 9.46%
Atomera -2,468.44% -79.99% -74.20%

Analyst Ratings

This is a breakdown of recent ratings for Diodes and Atomera, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diodes 0 2 1 0 2.33
Atomera 0 0 0 0 N/A

Diodes currently has a consensus price target of $53.00, suggesting a potential upside of 15.19%. Given Diodes’ higher possible upside, research analysts plainly believe Diodes is more favorable than Atomera.

Summary

Diodes beats Atomera on 11 of the 13 factors compared between the two stocks.

About Diodes

Diodes Incorporated, together with its subsidiaries, designs, manufactures, and supplies application-specific standard products in the discrete, logic, and analog and mixed-signal semiconductor markets in Asia, North America, and Europe. It primarily focuses on low pin count semiconductor devices with one or more active or passive components. The company offers discrete semiconductor products, such as performance Schottky rectifiers and diodes; Zener and performance Zener diodes, including tight tolerance and low operating current type; standard, fast, super-fast, and ultra-fast recovery rectifiers; bridge rectifiers; switching diodes; small signal bipolar and pre-biased transistors; MOSFETs; thyristor surge protection devices; and transient voltage suppressors. It also provides analog products comprising power management devices consisting of AC-DC and DC-DC converters, USB power switches, and low dropout and linear voltage regulators; linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including hall-effect sensors and motor drivers. In addition, the company offers standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and high-speed CMOS devices; ultra-low power CMOS logic products and analog switches; multichip products and co-packaged discrete, analog, and mixed-signal silicon in miniature packages; silicon and silicon epitaxial wafers; and crystals and oscillators. It sells its products to the consumer electronics, computing, communications, industrial, and automotive markets through direct sales and marketing personnel, independent sales representatives, and distributors. Diodes Incorporated was founded in 1959 and is headquartered in Plano, Texas.

About Atomera

Atomera Incorporated engages in developing, commercializing, and licensing proprietary materials, processes, and technologies for the semiconductor industry primarily in Europe and the Asia Pacific. The company's 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. Its customers include foundries, integrated device manufacturers, fabless semiconductor manufacturers, original equipment manufacturers, and electronic design automation companies. 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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