Head-To-Head Contrast: Cypress Semiconductor (CY) versus Advanced Energy Industries (AEIS)

Cypress Semiconductor (NASDAQ: CY) and Advanced Energy Industries (NASDAQ:AEIS) are both mid-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

97.4% of Cypress Semiconductor shares are owned by institutional investors. Comparatively, 94.3% of Advanced Energy Industries shares are owned by institutional investors. 0.7% of Cypress Semiconductor shares are owned by company insiders. Comparatively, 1.1% of Advanced Energy Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Cypress Semiconductor and Advanced Energy Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cypress Semiconductor 1 3 10 0 2.64
Advanced Energy Industries 0 3 3 0 2.50

Cypress Semiconductor presently has a consensus price target of $17.96, suggesting a potential upside of 6.47%. Advanced Energy Industries has a consensus price target of $83.00, suggesting a potential upside of 17.55%. Given Advanced Energy Industries’ higher probable upside, analysts plainly believe Advanced Energy Industries is more favorable than Cypress Semiconductor.

Dividends

Cypress Semiconductor pays an annual dividend of $0.44 per share and has a dividend yield of 2.6%. Advanced Energy Industries does not pay a dividend. Cypress Semiconductor pays out -110.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Cypress Semiconductor and Advanced Energy Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cypress Semiconductor $1.92 billion 2.93 -$686.25 million ($0.40) -42.18
Advanced Energy Industries $483.70 million 5.79 $127.45 million $5.12 13.79

Advanced Energy Industries has lower revenue, but higher earnings than Cypress Semiconductor. Cypress Semiconductor is trading at a lower price-to-earnings ratio than Advanced Energy Industries, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Cypress Semiconductor has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Advanced Energy Industries has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares Cypress Semiconductor and Advanced Energy Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cypress Semiconductor 2.64% 2.40% 1.72%
Advanced Energy Industries 33.76% 35.56% 25.61%

Summary

Advanced Energy Industries beats Cypress Semiconductor on 9 of the 16 factors compared between the two stocks.

About Cypress Semiconductor

Cypress Semiconductor Corporation manufactures embedded system solutions for automotive, industrial, home automation and appliances, consumer electronics and medical products. The Company’s segments include Microcontroller and Connectivity Division (MCD), and Memory Products Division (MPD). MCD focuses on microcontroller (MCU), analog and wireless and wired connectivity solutions. MPD focuses on parallel and serial NOR flash memories, NAND flash memories, static random access memory (SRAM), ferroelectric-random access memory (F-RAM) ferroelectric memory devices and other specialty memories. The Company’s products include Traveo MCUs and Flexible MCUs; PSoC 1, PSoC 3, PSoC 4 and PSoC 5LP; CapSense, and TrueTouch Analog Power Management integrated circuits (PMICs) and energy harvesting solutions.

About Advanced Energy Industries

Advanced Energy Industries, Inc. is a provider of engineered, precision power conversion, measurement and control solutions. The Company is engaged in designing, manufacturing, selling and supporting its power conversion products and solutions that transform power into various forms in various applications ranging from manufacturing and industrial processes to instrumentation, and test and measurement. It also provides repair and maintenance services for all of its products. Its process power systems include direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, matching networks, remote plasma sources for reactive gas applications and RF instrumentation. These power conversion systems refine, modify and control the raw electrical power from a utility and convert it into power that may be customized and is predictable and repeatable. Its power control modules and thermal instrumentation products are used in the semiconductor industry.

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