Power Integrations (POWI) vs. Spreadtrum Communications (SPRD) Head-To-Head Contrast

Power Integrations (NASDAQ: POWI) and Spreadtrum Communications (NASDAQ:SPRD) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Valuation and Earnings

This table compares Power Integrations and Spreadtrum Communications’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Power Integrations $387.39 million 6.01 $47.89 million $1.93 40.60
Spreadtrum Communications N/A N/A N/A $2.13 N/A

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

Dividends

Power Integrations pays an annual dividend of $0.56 per share and has a dividend yield of 0.7%. Spreadtrum Communications does not pay a dividend. Power Integrations pays out 29.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

98.2% of Power Integrations shares are owned by institutional investors. 4.3% of Power Integrations shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Power Integrations and Spreadtrum Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Integrations 0 1 3 0 2.75
Spreadtrum Communications 0 0 0 0 N/A

Power Integrations currently has a consensus target price of $81.33, indicating a potential upside of 3.81%.

Profitability

This table compares Power Integrations and Spreadtrum Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Power Integrations 13.69% 11.95% 10.73%
Spreadtrum Communications N/A N/A N/A

Summary

Power Integrations beats Spreadtrum Communications on 8 of the 10 factors compared between the two stocks.

Power Integrations Company Profile

Power Integrations, Inc. designs, develops and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source to the type of power required for downstream use. The Company’s ICs used in alternating current (AC)-direct current (DC) power supply convert high-voltage AC from a wall outlet to the low-voltage DC required by electronic devices. The Company offers a range of products, such as TOPSwitch, TinySwitch, LinkSwitch and Hiper families. The Company also offers CapZero and SenZero families. The Company offers a range of high-voltage gate-driver products sold under the SCALE and SCALE-II product-family names. The DPA-Switch family of products is a monolithic high-voltage DC-DC power conversion IC designed specifically for use in distributed power architectures.

Spreadtrum Communications Company Profile

Spreadtrum Communications, Inc. is a fabless semiconductor company that designs, develops and markets markets mobile chipset platforms for smartphones, feature phones and other consumer electronics products that support second generation (2G), third generation (3G) and fourth generation (4G) wireless communications standards. It offers a portfolio of integrated baseband processor solutions that support a range of wireless communications standards, including global system for mobile communications (GSM), general packet radio service (GPRS), enhanced data rates for global evolution (EDGE), time division synchronous code division multiple access (TD-SCDMA), wideband code division multiple access (WCDMA), high speed packet access + (HSPA+) and long term evolution (LTE), as well as an array of multimedia capabilities. In April 2012, Spreadtrum Shanghai acquired all the equity interests held by the nominee shareholders of Spreadtrum Beijing.

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