Analyzing InterDigital (NASDAQ:IDCC) and Ixia (XXIA)

Ixia (NASDAQ: XXIA) and InterDigital (NASDAQ:IDCC) are both companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Institutional & Insider Ownership

How to Become a New Pot Stock Millionaire

63.6% of Ixia shares are owned by institutional investors. Comparatively, 74.2% of InterDigital shares are owned by institutional investors. 24.4% of Ixia shares are owned by insiders. Comparatively, 1.9% of InterDigital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Ixia and InterDigital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ixia N/A N/A N/A N/A N/A
InterDigital $532.94 million 4.90 $174.29 million $6.06 12.44

InterDigital has higher revenue and earnings than Ixia.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ixia and InterDigital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ixia 0 0 0 0 N/A
InterDigital 0 1 3 0 2.75

InterDigital has a consensus price target of $90.50, indicating a potential upside of 20.03%. Given InterDigital’s higher probable upside, analysts clearly believe InterDigital is more favorable than Ixia.

Dividends

InterDigital pays an annual dividend of $1.40 per share and has a dividend yield of 1.9%. Ixia does not pay a dividend. InterDigital pays out 23.1% of its earnings in the form of a dividend.

Profitability

This table compares Ixia and InterDigital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ixia -29.28% -28.71% -19.71%
InterDigital 32.70% 26.52% 11.58%

Summary

InterDigital beats Ixia on 8 of the 10 factors compared between the two stocks.

About Ixia

Ixia is a provider of physical and virtual network application performance and security resilience solutions. The Company’s product solutions consist of its hardware platforms, software applications and services, including warranty and maintenance offerings. The Company helps its customers to validate the performance and security resilience of their applications and networks. The Company offers network test hardware platforms with interchangeable interfaces, using a common set of applications and Application Programing Interfaces (APIs). The Company provides its solutions to network equipment manufacturers (NEMs), service providers, and enterprise and government organizations. The Company’s product solutions consist of its hardware platforms, such as chassis, interface cards and appliances, software application tools, and services, including its warranty and maintenance offerings and professional services.

About InterDigital

InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. It offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. The company develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, and 4G wireless networks and mobile terminal devices; and other wireless technologies related to Wi-Fi, WLAN, WMAN, and WRAN. It also provides interoperability and scalability solutions through oneMPOWER platform; and common interface to multiple service providers. The company's patented technologies are used in various products, including mobile devices comprising cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment consisting of base stations; components, dongles, and modules for wireless devices; and Internet of Things devices and software platforms. As of December 31, 2017, it had a portfolio of approximately 19,000 patents and patent applications related to the fundamental technologies that enable wireless communications. InterDigital, Inc. was founded in 1972 and is headquartered in Wilmington, Delaware.

Receive News & Ratings for Ixia Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ixia and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply