Critical Review: Integrated Device Technology (IDTI) & TranSwitch (TXCCQ)

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Integrated Device Technology (NASDAQ:IDTI) and TranSwitch (OTCMKTS:TXCCQ) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Profitability

This table compares Integrated Device Technology and TranSwitch’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Integrated Device Technology 2.06% 29.69% 14.74%
TranSwitch N/A N/A N/A

Earnings & Valuation

This table compares Integrated Device Technology and TranSwitch’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Integrated Device Technology $842.76 million 7.16 -$12.13 million $1.27 36.81
TranSwitch N/A N/A N/A N/A N/A

TranSwitch has lower revenue, but higher earnings than Integrated Device Technology.

Risk & Volatility

Integrated Device Technology has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, TranSwitch has a beta of -4.43, indicating that its stock price is 543% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Integrated Device Technology and TranSwitch, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Integrated Device Technology 0 9 2 0 2.18
TranSwitch 0 0 0 0 N/A

Integrated Device Technology presently has a consensus price target of $43.20, indicating a potential downside of 7.59%. Given Integrated Device Technology’s higher probable upside, equities analysts plainly believe Integrated Device Technology is more favorable than TranSwitch.

Institutional and Insider Ownership

95.9% of Integrated Device Technology shares are held by institutional investors. Comparatively, 0.2% of TranSwitch shares are held by institutional investors. 1.2% of Integrated Device Technology shares are held by company insiders. Comparatively, 6.3% of TranSwitch shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Integrated Device Technology beats TranSwitch on 8 of the 9 factors compared between the two stocks.

Integrated Device Technology Company Profile

Integrated Device Technology, Inc. designs, develops, manufactures, and markets a range of semiconductor solutions for the communications, computing, consumer, automotive, industrial, and industrial end-markets. It operates in two segments, Communications; and Computing, Consumer and Industrial. The Communications segment offers clocks and timing solutions; radio frequency products; flow-control management products, including multi-port products; telecommunication interface products; static random access memory products; first in and first out memories; digital logic products; optical interconnect and frequency control solutions; and Serial RapidIO switching solutions. The Computing, Consumer and Industrial segment provides clock generation and distribution products; programmable timing devices; computing timing solutions; high-performance server memory interfaces; wireless power products; PCI Express products; signal integrity products; power management integrated circuits; video distribution and contribution solutions; sensor signal conditioners; and optical interconnect solutions, as well as sensing products for mobile, automotive, and industrial solutions. The company markets its products primarily to original equipment manufacturers through various channels, including direct sales, distributors, electronic manufacturing suppliers, and independent sales representatives. Integrated Device Technology, Inc. was founded in 1980 and is headquartered in San Jose, California.

TranSwitch Company Profile

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.

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