TranSwitch (OTCMKTS:TXCCQ) and Integrated Device Technology (NASDAQ:IDTI) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Volatility & Risk
TranSwitch has a beta of -4.43, indicating that its stock price is 543% less volatile than the S&P 500. Comparatively, Integrated Device Technology has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.
This table compares TranSwitch and Integrated Device Technology’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Integrated Device Technology||$842.76 million||7.11||-$12.13 million||$1.27||36.58|
TranSwitch has higher earnings, but lower revenue than Integrated Device Technology.
This table compares TranSwitch 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||2.06%||29.69%||14.74%|
Institutional and Insider Ownership
0.2% of TranSwitch shares are held by institutional investors. Comparatively, 92.4% of Integrated Device Technology shares are held by institutional investors. 6.3% of TranSwitch shares are held by insiders. Comparatively, 1.2% of Integrated Device Technology shares are held 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.
This is a breakdown of recent recommendations for TranSwitch and Integrated Device Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Integrated Device Technology||0||9||2||0||2.18|
Integrated Device Technology has a consensus price target of $43.20, suggesting a potential downside of 7.02%. Given Integrated Device Technology’s higher probable upside, analysts clearly believe Integrated Device Technology is more favorable than TranSwitch.
Integrated Device Technology beats TranSwitch on 8 of the 9 factors compared between the two stocks.
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 Integrated Device Technology
Integrated Device Technology, Inc. designs, develops, manufactures, and markets a range of semiconductor solutions for the communications, computing, consumer, automotive, industrial, and industrial end-markets. It operates in two segments, Communications; and Computing, Consumer and Industrial. The Communications segment offers clocks and timing solutions; radio frequency products; flow-control management products, including multi-port products; telecommunication interface products; static random access memory products; first in and first out memories; digital logic products; optical interconnect and frequency control solutions; and Serial RapidIO switching solutions. The Computing, Consumer and Industrial segment provides clock generation and distribution products; programmable timing devices; computing timing solutions; high-performance server memory interfaces; wireless power products; PCI Express products; signal integrity products; power management integrated circuits; video distribution and contribution solutions; sensor signal conditioners; and optical interconnect solutions, as well as sensing products for mobile, automotive, and industrial solutions. The company markets its products primarily to original equipment manufacturers through various channels, including direct sales, distributors, electronic manufacturing suppliers, and independent sales representatives. Integrated Device Technology, Inc. was founded in 1980 and is headquartered in San Jose, California.
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