THQ (OTCMKTS:THQIQ) versus Xperi (NYSE:XPER) Financial Comparison

Xperi (NYSE:XPER) and THQ (OTCMKTS:THQIQ) are both services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Xperi and THQ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	1	0	0	1	2.50
THQ	0	0	0	0	0.00

Given THQ’s higher possible upside, analysts clearly believe THQ is more favorable than Xperi.

Profitability

This table compares Xperi and THQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xperi	1.53%	-0.22%	-0.14%
THQ	N/A	N/A	N/A

Insider & Institutional Ownership

94.3% of Xperi shares are owned by institutional investors. 2.1% of Xperi shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Xperi and THQ”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$493.69 million	0.55	-$14.01 million	$0.16	36.94
THQ	N/A	N/A	N/A	N/A	N/A

THQ has lower revenue, but higher earnings than Xperi.

Summary

Xperi beats THQ on 6 of the 9 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.

About THQ

THQ Inc. (THQ), is a worldwide developer and publisher of interactive entertainment software for game systems. THQ develops software for all game systems, including home video game consoles, such as the Microsoft Xbox 360 and Xbox 360 Kinect (Xbox 360), Nintendo Wii (Wii), and Sony PlayStation 3 (PS3), handheld platforms, such as the Nintendo DS, DSi and 3DS (DS), and Sony PlayStation Portable (PSP); wireless devices based on the Apple iOS (including the iPhone, iTouch and iPad), Google Android, and Windows Mobile platforms; personal computers (PCs), including games played online, and the Internet, including on social networking sites, such as Facebook. THQ also develops and publishes titles (and supplemental downloadable content) for digital distribution through Microsoft’s Xbox LIVE Marketplace (Xbox LIVE) and Xbox LIVE Arcade (XBLA) and Sony’s PlayStation Network (PSN), as well as digitally offer its PC titles through online download stores and services, such as Amazon and Valve.