Energous (NASDAQ:WATT) versus Texas Instruments (NASDAQ:TXN) Financial Contrast

Texas Instruments (NASDAQ:TXN) and Energous (NASDAQ:WATT) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Texas Instruments and Energous”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Instruments	$17.68 billion	13.88	$5.00 billion	$6.57	40.90
Energous	$5.63 million	11.13	-$9.59 million	($2.21)	-5.13

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

Profitability

This table compares Texas Instruments and Energous’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Instruments	31.11%	35.77%	17.31%
Energous	-76.37%	-28.67%	-24.91%

Risk & Volatility

Texas Instruments has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Energous has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Insider & Institutional Ownership

85.0% of Texas Instruments shares are held by institutional investors. Comparatively, 4.3% of Energous shares are held by institutional investors. 0.6% of Texas Instruments shares are held by insiders. Comparatively, 0.2% of Energous shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Texas Instruments and Energous, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Instruments	4	8	15	2	2.52
Energous	1	1	0	0	1.50

Texas Instruments currently has a consensus target price of $312.12, indicating a potential upside of 16.16%. Given Texas Instruments’ stronger consensus rating and higher probable upside, equities analysts plainly believe Texas Instruments is more favorable than Energous.

Summary

Texas Instruments beats Energous on 14 of the 15 factors compared between the two stocks.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

About Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.