Critical Analysis: Infineon Technologies (OTCMKTS:IFNNY) vs. Everspin Technologies (NASDAQ:MRAM)

Everspin Technologies (NASDAQ:MRAMGet Free Report) and Infineon Technologies (OTCMKTS:IFNNYGet Free Report) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Risk & Volatility

Everspin Technologies has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Infineon Technologies has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Everspin Technologies and Infineon Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everspin Technologies 0 0 2 0 3.00
Infineon Technologies 0 0 0 4 4.00

Everspin Technologies currently has a consensus target price of $9.00, suggesting a potential upside of 57.07%. Given Everspin Technologies’ higher probable upside, equities analysts clearly believe Everspin Technologies is more favorable than Infineon Technologies.

Profitability

This table compares Everspin Technologies and Infineon Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everspin Technologies 2.85% 2.74% 2.27%
Infineon Technologies 6.49% 12.55% 7.52%

Earnings and Valuation

This table compares Everspin Technologies and Infineon Technologies”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everspin Technologies $63.76 million 1.97 $9.05 million $0.06 95.50
Infineon Technologies $16.22 billion 3.17 $1.41 billion $0.78 50.55

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

Insider and Institutional Ownership

44.7% of Everspin Technologies shares are held by institutional investors. Comparatively, 0.2% of Infineon Technologies shares are held by institutional investors. 6.1% of Everspin Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Infineon Technologies beats Everspin Technologies on 10 of the 15 factors compared between the two stocks.

About Everspin Technologies

(Get Free Report)

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.

About Infineon Technologies

(Get Free Report)

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and memory ICs; transceivers; diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company’s Green Industrial Power segment provides bare dies, discrete IGBTs, and driver ICs; SiC diodes, MOSFETs, and modules; and IGBT modules for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers chips for gas and pressure sensors, and MEMS microphones; 3D ToF sensors; control ICs; discrete low-, mid-, and high-voltage power MOSFET; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; SiC diode and MOSFETs; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, IoT, LED and conventional lighting systems, microinverter, mobile devices, power management, and special applications. The company’s Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, IoT, mobile communication, payment system, ticketing, access control, and computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Neubiberg, Germany.

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