Critical Analysis: Ichor (NASDAQ:ICHR) & Navitas Semiconductor (NASDAQ:NVTS)

Ichor (NASDAQ:ICHR) and Navitas Semiconductor (NASDAQ:NVTS) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Volatility and Risk

Ichor has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 3.75, suggesting that its share price is 275% more volatile than the S&P 500.

Profitability

This table compares Ichor and Navitas Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ichor	-5.28%	-1.10%	-0.77%
Navitas Semiconductor	-330.67%	-14.30%	-12.47%

Earnings & Valuation

This table compares Ichor and Navitas Semiconductor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ichor	$947.65 million	2.31	-$52.78 million	($1.48)	-42.51
Navitas Semiconductor	$45.92 million	127.64	-$116.95 million	($0.63)	-39.81

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

Institutional & Insider Ownership

94.8% of Ichor shares are held by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are held by institutional investors. 1.7% of Ichor shares are held by insiders. Comparatively, 12.4% of Navitas Semiconductor shares are held 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Ichor and Navitas Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ichor	1	2	6	0	2.56
Navitas Semiconductor	2	5	2	0	2.00

Ichor presently has a consensus target price of $64.57, suggesting a potential upside of 2.64%. Navitas Semiconductor has a consensus target price of $12.87, suggesting a potential downside of 48.70%. Given Ichor’s stronger consensus rating and higher probable upside, analysts clearly believe Ichor is more favorable than Navitas Semiconductor.

Summary

Ichor beats Navitas Semiconductor on 9 of the 14 factors compared between the two stocks.

About Ichor

Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.