Analyzing GSI Technology (NASDAQ:GSIT) and Xperi (NASDAQ:XPER)

GSI Technology (NASDAQ:GSIT) and Xperi (NASDAQ:XPER) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Valuation & Earnings

This table compares GSI Technology and Xperi’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GSI Technology $51.49 million 3.72 $160,000.00 N/A N/A
Xperi $406.13 million 2.45 -$280,000.00 $2.48 8.13

GSI Technology has higher earnings, but lower revenue than Xperi.

Insider and Institutional Ownership

33.6% of GSI Technology shares are held by institutional investors. Comparatively, 93.1% of Xperi shares are held by institutional investors. 35.5% of GSI Technology shares are held by company insiders. Comparatively, 1.8% of Xperi shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

GSI Technology has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Xperi has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Dividends

Xperi pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. GSI Technology does not pay a dividend. Xperi pays out 32.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for GSI Technology and Xperi, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSI Technology 0 1 0 0 2.00
Xperi 0 0 4 0 3.00

Xperi has a consensus price target of $32.00, indicating a potential upside of 58.73%. Given Xperi’s stronger consensus rating and higher probable upside, analysts clearly believe Xperi is more favorable than GSI Technology.

Profitability

This table compares GSI Technology and Xperi’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSI Technology 3.16% 1.83% 1.60%
Xperi 7.37% 22.90% 11.61%

Summary

Xperi beats GSI Technology on 9 of the 15 factors compared between the two stocks.

GSI Technology Company Profile

GSI Technology, Inc., a fabless semiconductor company, designs, develops, and markets memory products primarily for the networking and telecommunications markets in the United States, China, Singapore, the Netherlands, and internationally. It offers synchronous static random access memory (SRAM) products, such as BurstRAMs for microprocessor cache applications; No Bus Turnaround SRAMs to address the needs of moderate performance networking applications; SigmaQuad and SigmaDDR products that are double data rate and quad data rate synchronous SRAMs; and radiation-hardened SRAMs for aerospace and military applications, such as networking satellites and missiles. The company also provides low latency dynamic random access memory products. Its products are incorporated in a range of networking and telecommunications equipment, including core routers, multi-service access routers, universal gateways, enterprise edge routers, service provider edge routers, optical edge routers, fast Ethernet switches, wireless base stations, and network access equipment. The company markets its products through a network of independent sales representatives and distributors to original equipment manufacturers, as well as to military, industrial, test and measurement equipment, automotive, and medical markets. GSI Technology, Inc. was founded in 1995 and is headquartered in Sunnyvale, California.

Xperi Company Profile

Xperi Corporation, through its subsidiaries, creates, develops, and licenses audio, imaging, semiconductor packaging, and interconnect technologies in the United States, South Korea, Taiwan, Japan, Europe, the Middle East, and internationally. The company operates in two segments, Product Licensing; and Semiconductor and IP Licensing. The Product Licensing segment licenses technologies and intellectual property related to audio, digital radio, and imaging solutions under the DTS, FotoNation, HD Radio, and IMAX Enhanced brands. It delivers software and hardware based solutions combined with various other intellectual property to its customers or to their suppliers. This segment serves consumer electronics product manufacturers. The Semiconductor and IP Licensing segment develops and licenses semiconductor technologies and intellectual property to manufacturers, foundries, subcontract assemblers, and others. It develops and licenses 3D semiconductor packaging, interconnect, and bonding solutions for semiconductors that are used in smartphones, tablets, and laptops, as well as servers used in datacenters. This segment also provides engineering services. The company was formerly known as Tessera Holding Corporation and changed its name to Xperi Corporation in February 2017. Xperi Corporation was founded in 1990 and is headquartered in San Jose, California.

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