EZchip Semiconductor (NASDAQ: EZCH) and Integrated Device Technology (NASDAQ:IDTI) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Institutional & Insider Ownership
96.2% of Integrated Device Technology shares are owned by institutional investors. 1.2% of Integrated Device Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
EZchip Semiconductor has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, Integrated Device Technology has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.
Earnings & Valuation
This table compares EZchip Semiconductor and Integrated Device Technology’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Integrated Device Technology||$728.24 million||5.31||$110.48 million||($0.03)||-973.01|
Integrated Device Technology has higher revenue and earnings than EZchip Semiconductor. Integrated Device Technology is trading at a lower price-to-earnings ratio than EZchip Semiconductor, indicating that it is currently the more affordable of the two stocks.
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%|
This is a summary of current ratings and target prices for EZchip Semiconductor and Integrated Device Technology, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Integrated Device Technology||1||2||10||0||2.69|
Integrated Device Technology has a consensus price target of $33.75, indicating a potential upside of 15.58%. Given Integrated Device Technology’s higher probable upside, analysts plainly believe Integrated Device Technology is more favorable than EZchip Semiconductor.
Integrated Device Technology beats EZchip Semiconductor on 10 of the 11 factors compared between the two stocks.
About EZchip Semiconductor
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.
About Integrated Device Technology
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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