Power Integrations (NASDAQ:POWI) & GlobalFoundries (NASDAQ:GFS) Critical Survey

GlobalFoundries (NASDAQ:GFS) and Power Integrations (NASDAQ:POWI) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Earnings and Valuation

This table compares GlobalFoundries and Power Integrations”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GlobalFoundries	$7.39 billion	3.17	$1.02 billion	$1.34	31.65
Power Integrations	$403.23 million	8.54	$55.74 million	$0.66	91.80

GlobalFoundries has higher revenue and earnings than Power Integrations. GlobalFoundries 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 breakdown of current ratings and price targets for GlobalFoundries and Power Integrations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GlobalFoundries	0	8	6	0	2.43
Power Integrations	0	2	4	1	2.86

GlobalFoundries currently has a consensus price target of $50.46, suggesting a potential upside of 18.98%. Power Integrations has a consensus price target of $78.00, suggesting a potential upside of 28.73%. Given Power Integrations’ stronger consensus rating and higher possible upside, analysts plainly believe Power Integrations is more favorable than GlobalFoundries.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GlobalFoundries	10.95%	6.87%	4.29%
Power Integrations	9.27%	4.14%	3.77%

Risk and Volatility

GlobalFoundries has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Summary

GlobalFoundries beats Power Integrations on 8 of the 13 factors compared between the two stocks.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.

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.