Analyzing Navitas Semiconductor (NASDAQ:NVTS) and TranSwitch (OTCMKTS:TXCCQ)

TranSwitch (OTCMKTS:TXCCQ – Get Free Report) and Navitas Semiconductor (NASDAQ:NVTS – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Valuation and Earnings

This table compares TranSwitch and Navitas Semiconductor”s gross revenue, earnings per share (EPS) and valuation.

TranSwitch has higher earnings, but lower revenue than Navitas Semiconductor.

Risk & Volatility

TranSwitch has a beta of 22.56, suggesting that its stock price is 2,156% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 3.14, suggesting that its stock price is 214% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for TranSwitch and Navitas Semiconductor, as provided by MarketBeat.com.

Navitas Semiconductor has a consensus price target of $6.48, indicating a potential downside of 29.38%. Given TranSwitch’s higher probable upside, research analysts plainly believe TranSwitch is more favorable than Navitas Semiconductor.

Institutional & Insider Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. 6.3% of TranSwitch shares are owned by insiders. Comparatively, 29.9% of Navitas Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

About TranSwitch

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TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.

About Navitas Semiconductor

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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.