Contrasting Power Integrations (NASDAQ:POWI) & Cirrus Logic (NASDAQ:CRUS)

Cirrus Logic (NASDAQ:CRUS) and Power Integrations (NASDAQ:POWI) are both mid-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Insider and Institutional Ownership

88.0% of Cirrus Logic shares are held by institutional investors. 1.2% of Cirrus Logic shares are held by insiders. Comparatively, 1.2% of Power Integrations shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Cirrus Logic and Power Integrations”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cirrus Logic	$2.05 billion	2.96	$414.41 million	$8.17	14.82
Power Integrations	$449.37 million	7.80	$22.09 million	$0.45	139.44

Cirrus Logic has higher revenue and earnings than Power Integrations. Cirrus Logic is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Cirrus Logic and Power Integrations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cirrus Logic	0	4	5	0	2.56
Power Integrations	1	3	4	0	2.38

Cirrus Logic presently has a consensus target price of $150.71, suggesting a potential upside of 24.46%. Power Integrations has a consensus target price of $72.67, suggesting a potential upside of 15.80%. Given Cirrus Logic’s stronger consensus rating and higher possible upside, equities analysts clearly believe Cirrus Logic is more favorable than Power Integrations.

Volatility and Risk

Cirrus Logic has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Profitability

This table compares Cirrus Logic and Power Integrations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cirrus Logic	21.00%	20.61%	17.56%
Power Integrations	5.58%	5.50%	4.79%

Summary

Cirrus Logic beats Power Integrations on 10 of the 13 factors compared between the two stocks.

About Cirrus Logic

Cirrus Logic, Inc., a fabless semiconductor company, develops low-power high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including amplifiers; codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with integrated digital signal processing; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation for use in smartphones, tablets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products comprising camera controllers, haptic and sensing solutions, and battery and power ICs for use in smartphones, as well as legacy industrial and energy applications, such as digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.

About Power Integrations

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. It also offers high-voltage diodes; InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, the company provides motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.