O2Micro International (OIIM) vs. Adesto Technologies (IOTS) Critical Contrast

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O2Micro International (NASDAQ: IOTS) and Adesto Technologies (NASDAQ:IOTS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

O2Micro International has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, Adesto Technologies has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares O2Micro International and Adesto Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
O2Micro International 8.95% 3.22% 2.89%
Adesto Technologies -11.29% -8.04% -3.65%

Analyst Ratings

This is a summary of recent ratings and target prices for O2Micro International and Adesto Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
O2Micro International 0 1 0 0 2.00
Adesto Technologies 0 0 6 0 3.00

O2Micro International currently has a consensus target price of $3.50, indicating a potential upside of 84.21%. Adesto Technologies has a consensus target price of $10.00, indicating a potential upside of 75.44%. Given O2Micro International’s higher possible upside, research analysts clearly believe O2Micro International is more favorable than Adesto Technologies.

Earnings and Valuation

This table compares O2Micro International and Adesto Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
O2Micro International $60.21 million 0.81 -$6.14 million ($0.18) -10.56
Adesto Technologies $56.11 million 2.97 -$5.68 million ($0.24) -23.75

Adesto Technologies has lower revenue, but higher earnings than O2Micro International. Adesto Technologies is trading at a lower price-to-earnings ratio than O2Micro International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

41.8% of O2Micro International shares are held by institutional investors. Comparatively, 43.8% of Adesto Technologies shares are held by institutional investors. 8.0% of O2Micro International shares are held by insiders. Comparatively, 18.4% of Adesto Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About O2Micro International

O2Micro International Limited, together with its subsidiaries, designs, develops, and markets integrated circuits and solutions for power management components and systems in China, Japan, Taiwan, Korea, Singapore, and internationally. The company provides analog and mixed-signal integrated circuits that manage and provide LCD and LED lighting; control and monitor battery charging and discharging in portable electronic devices and vehicles; perform DC/DC and AC/DC conversion; and provide select and switch functionality between power sources. Its products are primarily used in the consumer electronics, computer, industrial, communication, and automotive markets for applications, including LCD and LED monitors, LCD and LED televisions, notebook and tablet computers, low/zero emission vehicles, mobile phones, power tools, energy efficient technology relating to batteries, LED lighting, and portable electronics devices. The company sells its products through direct sales force, independent sales representatives, and distributors to OEMs, ODMs, and module makers primarily in Asia and North America. It also licenses its proprietary intellectual property to third parties; and provides design and engineering support services. The company was founded in 1995 and is based in George Town, the Cayman Islands.

About Adesto Technologies

Adesto Technologies Corporation, together with its subsidiaries, provides application-specific and ultra-low power non-volatile memory products. The company offers standard serial flash products, including DataFlash for data-logging applications, such as industrial automation, home automation sensing, and health and fitness tracking; Fusion Flash for use in various high-volume consumer applications comprising wearables, mobile, and other applications; and EcoXip that enables enhanced processor performance and reduced system power consumption. It also provides conductive bridging random access memory based products, which include Mavriq for Internet of Things and other applications, which include camera sensors, Bluetooth low energy devices, wearables, gaming components, printer cartridges, medical equipment, and other devices; and Moneta for retail beacons, wearable medical and fitness devices, industrial and environmental sensors, agricultural monitors, and other low energy/long battery life, or energy harvesting system applications. The company sells its products directly through a network of representatives and distributors to original equipment manufacturers and original design manufacturers in the United States, Rest of Americas, Europe, the Asia Pacific, and internationally. Adesto Technologies Corporation was incorporated in 2006 and is headquartered in Santa Clara, California.

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