Critical Survey: CEVA (CEVA) and Intersil Corp (NASDAQ:ISIL)

Intersil Corp (NASDAQ: ISIL) and CEVA (NASDAQ:CEVA) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Valuation and Earnings

This table compares Intersil Corp and CEVA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Intersil Corp N/A N/A N/A $0.35 64.26
CEVA $72.65 million 13.92 $13.10 million $0.86 53.49

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

Insider and Institutional Ownership

93.4% of Intersil Corp shares are owned by institutional investors. Comparatively, 86.8% of CEVA shares are owned by institutional investors. 1.6% of Intersil Corp shares are owned by insiders. Comparatively, 3.9% of CEVA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Intersil Corp and CEVA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intersil Corp 13.67% 7.83% 6.57%
CEVA 21.89% 9.02% 7.98%

Analyst Recommendations

This is a summary of current recommendations and price targets for Intersil Corp and CEVA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intersil Corp 0 1 0 0 2.00
CEVA 0 1 6 0 2.86

Intersil Corp presently has a consensus price target of $22.50, indicating a potential upside of 0.04%. CEVA has a consensus price target of $46.50, indicating a potential upside of 1.09%. Given CEVA’s stronger consensus rating and higher probable upside, analysts plainly believe CEVA is more favorable than Intersil Corp.

Dividends

Intersil Corp pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. CEVA does not pay a dividend. Intersil Corp pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

CEVA beats Intersil Corp on 10 of the 12 factors compared between the two stocks.

Intersil Corp Company Profile

Intersil Corporation is engaged in designing and developing power management and precision analog integrated circuits (IC). The Company provides power management and precision analog technology for applications in the infrastructure, industrial, automotive, military, aerospace, computing, and consumer markets. It supplies a range of power IC solutions for battery management, processor power management and display power management, including power regulators, converters and controllers, as well as integrated power modules. It also provides precision analog components, such as amplifiers and buffers, proximity and light sensors, data converters, optoelectronics, video decoders and interface products. It is also a supplier of radiation-hardened devices to the military and aerospace industries. It operates in approximately two market categories, including industrial and infrastructure, and computing and consumer.

CEVA Company Profile

CEVA, Inc. (CEVA) is a licensor of signal processing intellectual property (IP). The Company partners with semiconductor companies and original equipment manufacturers (OEMs) to create connected devices for a range of end markets, including mobile, consumer, automotive, industrial and Internet of things (IoT). The Company operates in the segment of licensing of intellectual property to semiconductor companies and electronic equipment manufacturers. CEVA addresses the requirements of the mobile, consumer, automotive, industrial and IoT markets by designing and licensing a range of application-specific signal processing platforms, which enable the design of solutions for developing a range of applications, including communications and connectivity, audio and voice, imaging and vision, and storage.

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