ChipMOS TECHNOLOGIES (NASDAQ:IMOS) and Power Integrations (NASDAQ:POWI) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations for ChipMOS TECHNOLOGIES and Power Integrations, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
ChipMOS TECHNOLOGIES | 0 | 0 | 0 | 0 | N/A |
Power Integrations | 0 | 2 | 4 | 0 | 2.67 |
Power Integrations has a consensus price target of $86.80, suggesting a potential upside of 7.08%. Given Power Integrations' higher possible upside, analysts clearly believe Power Integrations is more favorable than ChipMOS TECHNOLOGIES.
Valuation and Earnings
This table compares ChipMOS TECHNOLOGIES and Power Integrations' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
ChipMOS TECHNOLOGIES | $680 million | 1.86 | $83.87 million | N/A | N/A |
Power Integrations | $420.67 million | 11.63 | $193.47 million | $0.89 | 91.08 |
Power Integrations has lower revenue, but higher earnings than ChipMOS TECHNOLOGIES.
Dividends
ChipMOS TECHNOLOGIES pays an annual dividend of $0.95 per share and has a dividend yield of 2.7%. Power Integrations pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. Power Integrations pays out 58.4% of its earnings in the form of a dividend. Power Integrations has raised its dividend for 1 consecutive years.
Volatility and Risk
ChipMOS TECHNOLOGIES has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Power Integrations has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Profitability
This table compares ChipMOS TECHNOLOGIES and Power Integrations' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
ChipMOS TECHNOLOGIES | 9.91% | 11.21% | 6.16% |
Power Integrations | 44.72% | 8.34% | 7.46% |
Insider and Institutional Ownership
97.4% of Power Integrations shares are held by institutional investors. 2.1% of Power Integrations shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Power Integrations beats ChipMOS TECHNOLOGIES on 11 of the 15 factors compared between the two stocks.