Diodes (NASDAQ: DIOD) and EZchip Semiconductor (NASDAQ:EZCH) are both small-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Volatility & Risk
Diodes has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, EZchip Semiconductor has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.
74.7% of Diodes shares are held by institutional investors. 7.0% of Diodes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Diodes and EZchip Semiconductor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Diodes and EZchip Semiconductor’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diodes||$942.16 million||1.55||$15.93 million||$0.60||49.33|
Diodes has higher revenue and earnings than EZchip Semiconductor. EZchip Semiconductor is trading at a lower price-to-earnings ratio than Diodes, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Diodes and EZchip Semiconductor, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Diodes presently has a consensus target price of $36.50, indicating a potential upside of 23.31%. Given Diodes’ higher probable upside, research analysts clearly believe Diodes is more favorable than EZchip Semiconductor.
Diodes beats EZchip Semiconductor on 9 of the 11 factors compared between the two stocks.
Diodes Company Profile
Diodes Incorporated is a manufacturer and supplier of application-specific standard products within the discrete, logic, analog and mixed-signal semiconductor markets, serving the consumer electronics, computing, communications, industrial and automotive markets. The Company’s products include diodes; rectifiers; transistors; metal-oxide semiconductor field-effect transistors (MOSFETs); protection devices; amplifiers and comparators; Hall-effect and temperature sensors, and power management devices, including light emitting diode (LED) drivers, alternating current (AC)-direct current (DC) and DC-DC switching, linear voltage regulators and voltage references, along with special function devices, such as universal serial bus (USB) power switches, load switches, voltage supervisors and motor controllers. It also holds interests in Pericom Semiconductor Corporation, which designs, develops and markets integrated circuits (ICs) and frequency control products (FCPs).
EZchip Semiconductor Company Profile
EZchip Semiconductor Ltd.is a fabless semiconductor company that provides data-path processing solutions for a range of applications for carrier, cloud and data center networks. The Company’s portfolio of solutions includes network processors, multi-core processors, network adapters and appliances with a software ecosystem. It designs and sells network processors for networking equipment, integrating several key functions into a single chip. Networking equipment vendors use the Company’s network processors to form the silicon core of networking equipment, such as switches and routers, for voice, video and data integration in a variety of applications. The Company’s network processors are single-chip solutions that enable its customers to design multi-port line cards. Its multi-core processors allow customers to design systems that are high performance, as well as power efficient. The Company’s subsidiaries include EZchip Technologies Ltd., EZchip Inc. and EZchip Semiconductor Inc.
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