IMPINJ (NASDAQ:PI) and Diamond Eagle Acquisition (NYSE:VRT) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares IMPINJ and Diamond Eagle Acquisition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IMPINJ -15.04% -6.54% -3.94%
Diamond Eagle Acquisition N/A 87.80% 0.62%

Valuation & Earnings

This table compares IMPINJ and Diamond Eagle Acquisition’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IMPINJ $152.84 million 2.38 -$22.99 million ($1.02) -16.02
Diamond Eagle Acquisition N/A N/A $4.39 million N/A N/A

Diamond Eagle Acquisition has lower revenue, but higher earnings than IMPINJ.

Institutional and Insider Ownership

84.7% of IMPINJ shares are owned by institutional investors. Comparatively, 61.3% of Diamond Eagle Acquisition shares are owned by institutional investors. 28.0% of IMPINJ shares are owned by company 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for IMPINJ and Diamond Eagle Acquisition, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IMPINJ 0 2 5 0 2.71
Diamond Eagle Acquisition 0 0 2 0 3.00

IMPINJ presently has a consensus price target of $31.50, suggesting a potential upside of 92.78%. Diamond Eagle Acquisition has a consensus price target of $12.00, suggesting a potential upside of 56.25%. Given IMPINJ’s higher probable upside, research analysts clearly believe IMPINJ is more favorable than Diamond Eagle Acquisition.

Volatility and Risk

IMPINJ has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500. Comparatively, Diamond Eagle Acquisition has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

About IMPINJ

Impinj, Inc. operates a platform that enables wireless connectivity for everyday items by delivering each item's unique identity, location, and authenticity to business and consumer applications. Its integrated platform connects everyday items to applications, delivering real-time information to businesses about items they create, manage, transport, and sell. The company's platform includes endpoint integrated circuits (ICs), a miniature radios-on-a-chip, which attach-to and identify their host items; and connectivity layer that comprises reader ICs and modules, readers, and gateways to wirelessly identify, locate, authenticate, and engage items, as well as provide power to and communicate bidirectionally with endpoint ICs. Its platform also consists of software layer that comprises ItemSense, a distributed operating system for its platform. The company primarily serves retail, supply chain and logistics, aviation, automotive, healthcare, industrial and manufacturing, sports, food, datacenter, travel, banking, and linen and uniform tracking sectors through distributors, system integrators, value-added resellers, and software solution partners in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Impinj, Inc. was founded in 2000 and is headquartered in Seattle, Washington.

About Diamond Eagle Acquisition

GS Acquisition Holdings Corp (NYSE: GSAH) is a special purpose acquisition company formed for the purpose of effecting merger, stock purchase or similar business combination with one or more businesses. The company is sponsored by an affiliate of The Goldman Sachs Group, Inc. and David M. Cote. The company’s strategy is to identify and complete its initial business combination with a business in the diversified industrial sector, which includes, among others, Aerospace & Defense, Industrial Services, Chemicals, Home & Building Products, Building & Construction, Capital Goods, Packaging and Supply Chain, that stands to benefit from Mr. Cote’s experience and operating capabilities. In June 2018, GS Acquisition Holdings completed its initial public offer, raising $690 million from investors.

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