Contrasting SuperCom (SPCB) & Infineon Technologies (IFNNY)

SuperCom (NASDAQ:SPCB) and Infineon Technologies (OTCMKTS:IFNNY) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for SuperCom and Infineon Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SuperCom 0 0 1 0 3.00
Infineon Technologies 0 0 1 0 3.00

SuperCom currently has a consensus price target of $5.00, indicating a potential upside of 270.37%. Given SuperCom’s higher possible upside, analysts plainly believe SuperCom is more favorable than Infineon Technologies.

Insider & Institutional Ownership

8.3% of SuperCom shares are owned by institutional investors. Comparatively, 0.2% of Infineon Technologies shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

SuperCom has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Infineon Technologies has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Valuation & Earnings

This table compares SuperCom and Infineon Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SuperCom $33.26 million 0.61 -$6.66 million ($0.14) -9.64
Infineon Technologies $8.83 billion 2.67 $1.25 billion $1.14 18.19

Infineon Technologies has higher revenue and earnings than SuperCom. SuperCom is trading at a lower price-to-earnings ratio than Infineon Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

Infineon Technologies pays an annual dividend of $0.29 per share and has a dividend yield of 1.4%. SuperCom does not pay a dividend. Infineon Technologies pays out 25.4% of its earnings in the form of a dividend.

Profitability

This table compares SuperCom and Infineon Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SuperCom -17.31% 4.30% 2.58%
Infineon Technologies 14.27% 18.53% 10.98%

Summary

Infineon Technologies beats SuperCom on 10 of the 13 factors compared between the two stocks.

SuperCom Company Profile

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company offers MAGNA, a common platform for ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. Its PureRF suite is a solution based on radio-frequency identification (RFID) tag technology to identify, locate, track, monitor, count, and protect people and objects. The company's PureRF suite comprises PureRF tags, hands-free long-range RFID asset and Vehicle tags, PureRF readers, PureRF activators, and PureRF initializers. It also provides house arrest monitoring systems, PureTag RF bracelets, PureCom RF base stations, GPS offender tracking systems, PureTrack smartphone device, PureBeacon, PureMonitor offender electronic monitoring software, inmate monitoring systems, DoorGuard tracking station, and personnel tags. In addition, the company offers domestic violence victim protection systems; SuperPay, a mobile payment hybrid suite; and PowaPOS, an integrated design incorporating retail peripherals. Further, it provides Safend's Encryption Suite that protects the organization's sensitive data; and designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. The company serves healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, and building and access automation industries. SuperCom Ltd. sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives and resellers. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was founded in 1988 and is based in Herzliya, Israel.

Infineon Technologies Company Profile

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and system solutions in Europe, the Middle East, Africa, the Asia-Pacific, Japan, and Americas. It operates in four segments: Automotive, Industrial Power Control, Power Management & Multimarket, and Chip Card & Security. The Automotive segment offers automotive microcontrollers for powertrain, safety, and driver assistance systems; discrete power semiconductors; IGBT modules; industrial microcontrollers; magnetic and pressure sensors; power integrated circuits (ICs); radar sensor ICs; transceivers; and voltage regulators. Its products are used in assistance and safety systems, comfort electronics, and powertrain and security products. The Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, IGBT modules and stacks, and silicon carbide modules for electric vehicle charging stations, energy distribution, home appliances, industrial drives, industrial robots, industrial vehicles, renewable energy generation, traction, and uninterruptable power supplies. The Power Management & Multimarket segment offers control ICs, customized chips, discrete low-voltage and high-voltage power MOSFETs and driver ICs, GPS low-noise amplifiers, MEMS and ASICs for silicon microphones, pressure sensors, radar sensor ICs, RF antenna switches and power transistors, and transient voltage suppressor diodes. Its products are used in electric vehicle charging stations, DC motors, various components, Internet of Things, LED and conventional lighting systems, mobile devices, power management, and cellular infrastructure. The Chip Card & Security segment provides contact-based, contactless, dual interface, and embedded security controllers for authentication, automotive, government identification document, healthcare card, Internet of things, mobile communication, payment, ticketing, access control, and trusted computing applications. The company is headquartered in Munich, Germany.

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