Power Integrations (NASDAQ:POWI – Get Free Report) and Everspin Tech (NASDAQ:MRAM – Get Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Power Integrations and Everspin Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Power Integrations | 9.81% | 7.36% | 6.44% |
| Everspin Tech | -14.28% | 9.67% | 7.98% |
Valuation & Earnings
This table compares Power Integrations and Everspin Tech”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Power Integrations | $443.50 million | 5.80 | $22.09 million | $0.79 | 58.30 |
| Everspin Tech | $55.20 million | 5.70 | -$590,000.00 | ($0.40) | -32.30 |
Power Integrations has higher revenue and earnings than Everspin Tech. Everspin Tech is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Power Integrations has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, Everspin Tech has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.
Insider and Institutional Ownership
44.7% of Everspin Tech shares are owned by institutional investors. 1.2% of Power Integrations shares are owned by insiders. Comparatively, 6.3% of Everspin Tech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Power Integrations and Everspin Tech, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Power Integrations | 0 | 4 | 4 | 0 | 2.50 |
| Everspin Tech | 1 | 0 | 2 | 0 | 2.33 |
Power Integrations currently has a consensus price target of $59.67, suggesting a potential upside of 29.54%. Everspin Tech has a consensus price target of $22.00, suggesting a potential upside of 70.28%. Given Everspin Tech’s higher probable upside, analysts plainly believe Everspin Tech is more favorable than Power Integrations.
Summary
Power Integrations beats Everspin Tech on 8 of the 14 factors compared between the two stocks.
About Power Integrations
Power Integrations, Inc. designs and markets semiconductor technologies used in high-voltage power conversion. Its products include integrated circuits, power switches, diodes and gate drivers that help convert and control electricity in electronic systems. The company’s products are used in applications such as consumer electronics, appliances, industrial equipment, communications systems, electric vehicles and renewable-energy installations. Its EcoSmart technology is designed to improve energy efficiency in power supplies and other power-conversion applications.
About Everspin Tech
Everspin Technologies, Inc. develops and supplies magnetoresistive random-access memory (MRAM), a nonvolatile memory technology that retains data when power is removed. The company’s products include discrete MRAM devices and embedded MRAM technology for integration into customer chips and systems. Its offerings include toggle MRAM and spin-transfer torque MRAM, designed for applications that need persistent data storage, fast access or frequent write cycles. Everspin serves markets including industrial automation, automotive, enterprise storage, aerospace and defense.
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