TranSwitch (OTCMKTS:TXCCQ – Get Free Report) and SiTime (NASDAQ:SITM – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.
Insider and Institutional Ownership
84.3% of SiTime shares are owned by institutional investors. 6.3% of TranSwitch shares are owned by insiders. Comparatively, 2.3% of SiTime shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
TranSwitch has a beta of 14.73, meaning that its share price is 1,373% more volatile than the S&P 500. Comparatively, SiTime has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
TranSwitch | 0 | 0 | 0 | 0 | N/A |
SiTime | 1 | 0 | 3 | 0 | 2.50 |
SiTime has a consensus target price of $130.00, suggesting a potential downside of 27.53%.
Valuation and Earnings
This table compares TranSwitch and SiTime”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
TranSwitch | N/A | N/A | N/A | N/A | N/A |
SiTime | $154.81 million | 26.50 | -$80.54 million | ($4.13) | -43.44 |
TranSwitch has higher earnings, but lower revenue than SiTime.
Profitability
This table compares TranSwitch and SiTime’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
TranSwitch | N/A | N/A | N/A |
SiTime | -60.46% | -10.53% | -8.40% |
Summary
TranSwitch beats SiTime on 5 of the 8 factors compared between the two stocks.
About TranSwitch
TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.
About SiTime
SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.
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