Critical Review: TranSwitch (OTCMKTS:TXCCQ) & Navitas Semiconductor (NASDAQ:NVTS)

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

Insider and Institutional Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. 29.9% of Navitas Semiconductor shares are owned by insiders. Comparatively, 6.3% of TranSwitch shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Navitas Semiconductor and TranSwitch, as reported by MarketBeat.com.

Navitas Semiconductor currently has a consensus price target of $6.48, suggesting a potential downside of 12.03%. Given TranSwitch’s higher probable upside, analysts clearly believe TranSwitch is more favorable than Navitas Semiconductor.

Profitability

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

Risk and Volatility

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

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.

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.