Reviewing UTime (NASDAQ:WTO) & InterDigital (NASDAQ:IDCC)

InterDigital (NASDAQ:IDCC) and UTime (NASDAQ:WTO) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Institutional and Insider Ownership

99.8% of InterDigital shares are held by institutional investors. Comparatively, 1.1% of UTime shares are held by institutional investors. 2.8% of InterDigital shares are held by company insiders. Comparatively, 54.6% of UTime shares are held by company 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.

Analyst Ratings

This is a summary of current ratings and price targets for InterDigital and UTime, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InterDigital	0	1	3	0	2.75
UTime	1	0	0	0	1.00

InterDigital currently has a consensus price target of $345.00, suggesting a potential upside of 1.74%. Given InterDigital’s stronger consensus rating and higher probable upside, analysts plainly believe InterDigital is more favorable than UTime.

Volatility and Risk

InterDigital has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, UTime has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Profitability

This table compares InterDigital and UTime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InterDigital	51.92%	53.44%	25.99%
UTime	N/A	N/A	N/A

Earnings & Valuation

This table compares InterDigital and UTime”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InterDigital	$868.52 million	10.07	$358.61 million	$14.03	24.17
UTime	N/A	N/A	N/A	N/A	N/A

InterDigital has higher revenue and earnings than UTime.

Summary

InterDigital beats UTime on 9 of the 10 factors compared between the two stocks.

About InterDigital

InterDigital, Inc. operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G, 5G, advanced and 6G, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and engages in the research and development of artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, and base stations; televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.

About UTime

UTime Limited, together with its subsidiaries, designs, develops, manufactures, sells, and operates mobile phones, accessories, and related consumer electronics. The company offers consumer electronics, such as power banks, bluetooth speakers, batteries, chargers, cell phone parts, molds, and shells. It provides electronics manufacturing services, including original equipment manufacturer and original design manufacturer services. It sells its products under the UTime and Do brand names in South America, South Asia, Southeast Asia, and Africa. UTime Limited was founded in 2008 and is headquartered in Shenzhen, China.