Critical Review: Integrated Device Technology (IDTI) & Infineon Technologies (IFNNY)

Integrated Device Technology (OTCMKTS: IFNNY) and Infineon Technologies (OTCMKTS:IFNNY) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

97.6% of Integrated Device Technology shares are owned by institutional investors. Comparatively, 0.3% of Infineon Technologies shares are owned by institutional investors. 1.2% of Integrated Device Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Integrated Device Technology and Infineon Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Integrated Device Technology 0 8 5 0 2.38
Infineon Technologies 0 0 1 0 3.00

Integrated Device Technology presently has a consensus target price of $41.67, suggesting a potential downside of 11.50%. Given Integrated Device Technology’s higher possible upside, equities analysts clearly believe Integrated Device Technology is more favorable than Infineon Technologies.

Volatility and Risk

Integrated Device Technology has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Infineon Technologies has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Dividends

Infineon Technologies pays an annual dividend of $0.29 per share and has a dividend yield of 1.3%. Integrated Device Technology does not pay a dividend. Infineon Technologies pays out 30.9% of its earnings in the form of a dividend.

Profitability

This table compares Integrated Device Technology and Infineon Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Integrated Device Technology 0.21% 26.05% 13.42%
Infineon Technologies 15.15% 19.45% 11.23%

Valuation and Earnings

This table compares Integrated Device Technology and Infineon Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Integrated Device Technology $842.76 million 7.23 -$12.13 million $1.27 37.07
Infineon Technologies $7.80 billion 3.35 $872.87 million $0.94 24.51

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

Summary

Integrated Device Technology beats Infineon Technologies on 11 of the 16 factors compared between the two stocks.

Integrated Device Technology Company Profile

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.

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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