Intermolecular (NASDAQ: IMI) and Texas Instruments (NASDAQ:TXN) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Institutional & Insider Ownership
37.3% of Intermolecular shares are owned by institutional investors. Comparatively, 84.3% of Texas Instruments shares are owned by institutional investors. 45.4% of Intermolecular shares are owned by insiders. Comparatively, 1.0% of Texas Instruments shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Texas Instruments pays an annual dividend of $2.48 per share and has a dividend yield of 2.2%. Intermolecular does not pay a dividend. Texas Instruments pays out 68.7% of its earnings in the form of a dividend.
Volatility and Risk
Intermolecular has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Texas Instruments has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.
This table compares Intermolecular and Texas Instruments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Intermolecular and Texas Instruments’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Intermolecular||$37.20 million||1.99||-$10.40 million||($0.22)||-6.77|
|Texas Instruments||$14.96 billion||7.33||$3.68 billion||$3.61||30.89|
Texas Instruments has higher revenue and earnings than Intermolecular. Intermolecular is trading at a lower price-to-earnings ratio than Texas Instruments, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Intermolecular and Texas Instruments, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Texas Instruments has a consensus target price of $110.54, indicating a potential downside of 0.89%. Given Texas Instruments’ higher possible upside, analysts plainly believe Texas Instruments is more favorable than Intermolecular.
Texas Instruments beats Intermolecular on 13 of the 15 factors compared between the two stocks.
Intermolecular, Inc. provides thin film solutions. The Company’s high productivity combinatorial (HPC) platform, which consists of its tempus processing tools, its automated characterization methods, and its Informatics analysis software, is purpose-built for research and development (R&D) using combinatorial process systems. It develops technology and Internet protocol (IP) rights focused on materials, processes, integration and device architectures in collaboration with its customers. Its HPC platform consists of tempus HPC processing, automated characterization and informatics and analysis software. The Company offers a series of wet processing tools and dry processing tools. Its informatics software includes workflow management software, analysis and reporting software, security and collaboration management software, and integration services. It caters to semiconductor device, semiconductor materials and equipment and clean energy market companies.
About Texas Instruments
Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. As of December 31, 2016, the Company had design, manufacturing or sales operations in more than 30 countries. The Company’s Analog segment’s product line includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA). HVAL products support applications, such as automotive safety devices, touchscreen controllers, low-voltage motor drivers and integrated motor controllers. The Company’s Embedded Processing segment’s product line includes Processor, Microcontrollers and Connectivity. Processor products include digital signal processors (DSPs) and applications processors. DSPs perform mathematical computations to process digital data.
Receive News & Ratings for Intermolecular Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Intermolecular and related companies with MarketBeat.com's FREE daily email newsletter.