Axcelis Technologies (NASDAQ:ACLS – Get Free Report) and Power Integrations (NASDAQ:POWI – Get Free Report) are both mid-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Valuation and Earnings
This table compares Axcelis Technologies and Power Integrations”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axcelis Technologies | $839.05 million | 3.20 | $120.24 million | $2.98 | 29.21 |
| Power Integrations | $443.50 million | 4.88 | $22.09 million | $0.45 | 86.16 |
Axcelis Technologies has higher revenue and earnings than Power Integrations. Axcelis Technologies is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
90.0% of Axcelis Technologies shares are held by institutional investors. 0.5% of Axcelis Technologies shares are held by insiders. Comparatively, 1.2% of Power Integrations shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Axcelis Technologies and Power Integrations, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axcelis Technologies | 1 | 3 | 1 | 0 | 2.00 |
| Power Integrations | 0 | 4 | 4 | 0 | 2.50 |
Axcelis Technologies currently has a consensus price target of $148.67, indicating a potential upside of 70.77%. Power Integrations has a consensus price target of $59.67, indicating a potential upside of 53.90%. Given Axcelis Technologies’ higher possible upside, equities analysts plainly believe Axcelis Technologies is more favorable than Power Integrations.
Risk and Volatility
Axcelis Technologies has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.
Profitability
This table compares Axcelis Technologies and Power Integrations’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axcelis Technologies | 10.71% | 11.69% | 8.89% |
| Power Integrations | 5.58% | 5.50% | 4.79% |
Summary
Axcelis Technologies beats Power Integrations on 9 of the 14 factors compared between the two stocks.
About Axcelis Technologies
Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia Pacific. The company offers high energy, high current, and medium current implanters for various application requirements. It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. It sells its equipment and services to semiconductor chip manufacturers through its direct sales force. The company was founded in 1978 and is headquartered in Beverly, Massachusetts.
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.
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