Coherent (NASDAQ: COHR) and Intersil Corp (NASDAQ:ISIL) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Volatility and Risk
Coherent has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Intersil Corp has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Institutional and Insider Ownership
92.4% of Coherent shares are owned by institutional investors. Comparatively, 93.4% of Intersil Corp shares are owned by institutional investors. 1.4% of Coherent shares are owned by insiders. Comparatively, 1.6% of Intersil Corp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Coherent and Intersil Corp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Coherent||$1.48 billion||3.63||$403.41 million||$6.63||32.94|
Coherent has higher revenue and earnings than Intersil Corp. Coherent is trading at a lower price-to-earnings ratio than Intersil Corp, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Coherent and Intersil Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Coherent presently has a consensus price target of $266.43, suggesting a potential upside of 22.01%. Intersil Corp has a consensus price target of $22.40, suggesting a potential downside of 0.40%. Given Coherent’s stronger consensus rating and higher possible upside, analysts plainly believe Coherent is more favorable than Intersil Corp.
This table compares Coherent and Intersil Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Intersil Corp pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Coherent 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.
Coherent beats Intersil Corp on 8 of the 13 factors compared between the two stocks.
Coherent, Inc. is a photonics manufacturer. The Company is engaged in designing, manufacturing, servicing and marketing of lasers and related accessories for a range of scientific, commercial and industrial applications. It operates through two segments: Specialty Lasers and Systems (SLS) and Commercial Lasers and Components (CLC). SLS develops and manufactures configurable products serving the microelectronics, scientific research and government programs, and original equipment manufacturer (OEM) components and instrumentation markets. The Commercial Lasers and Components segment focuses on higher volume products that are offered in set configurations. The product architectures are designed for exchange at the point of use such that substantially all product service and repairs are based upon advanced replacement and depot (that is factory) repair. CLC’s primary markets include materials processing, OEM components, and instrumentation and microelectronics.
About Intersil Corp
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.
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