EZchip Semiconductor (NASDAQ: EZCH) and Integrated Device Technology (NASDAQ:IDTI) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Volatility and Risk
EZchip Semiconductor has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Integrated Device Technology has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.
Valuation & Earnings
This table compares EZchip Semiconductor and Integrated Device Technology’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Integrated Device Technology||$728.24 million||5.97||$110.48 million||$0.73||44.99|
Integrated Device Technology has higher revenue and earnings than EZchip Semiconductor. EZchip Semiconductor is trading at a lower price-to-earnings ratio than Integrated Device Technology, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for EZchip Semiconductor and Integrated Device Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Integrated Device Technology||1||2||11||0||2.71|
Integrated Device Technology has a consensus price target of $33.69, suggesting a potential upside of 2.60%. Given Integrated Device Technology’s higher possible upside, analysts clearly believe Integrated Device Technology is more favorable than EZchip Semiconductor.
This table compares EZchip Semiconductor and Integrated Device Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Integrated Device Technology||-0.33%||20.26%||11.52%|
Insider and Institutional Ownership
97.2% of Integrated Device Technology shares are owned by institutional investors. 1.2% of Integrated Device Technology shares are owned by company 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.
Integrated Device Technology beats EZchip Semiconductor on 10 of the 11 factors compared between the two stocks.
EZchip Semiconductor Company Profile
EZchip Semiconductor Ltd.is a fabless semiconductor company that provides data-path processing solutions for a range of applications for carrier, cloud and data center networks. The Company’s portfolio of solutions includes network processors, multi-core processors, network adapters and appliances with a software ecosystem. It designs and sells network processors for networking equipment, integrating several key functions into a single chip. Networking equipment vendors use the Company’s network processors to form the silicon core of networking equipment, such as switches and routers, for voice, video and data integration in a variety of applications. The Company’s network processors are single-chip solutions that enable its customers to design multi-port line cards. Its multi-core processors allow customers to design systems that are high performance, as well as power efficient. The Company’s subsidiaries include EZchip Technologies Ltd., EZchip Inc. and EZchip Semiconductor Inc.
Integrated Device Technology Company Profile
Integrated Device Technology, Inc. develops system-level solutions that optimize its customers’ applications. The Company operates through two segments: the Communications, and the Computing, Consumer and Industrial. It offers products in radio frequency (RF), timing, wireless power transfer, serial switching, interfaces and sensing solutions. It offers a range of mixed-signal solutions for the communications, computing, consumer, automotive and industrial segments. These products are used for development in areas, such as fourth generation (4G) infrastructure, network communications, cloud datacenters and power management for computing and mobile devices. It offers solutions in designing communications, computing, consumer, automotive and industrial applications. It markets its products to original equipment manufacturers (OEMs) through a range of channels, including direct sales, distributors and electronic manufacturing suppliers (EMSs).
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