Power Integrations (NASDAQ:POWI – Get Free Report) and Cohu (NASDAQ:COHU – Get Free Report) are both mid-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Power Integrations and Cohu, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Power Integrations | 0 | 4 | 4 | 0 | 2.50 |
| Cohu | 1 | 1 | 7 | 1 | 2.80 |
Power Integrations presently has a consensus target price of $72.67, suggesting a potential upside of 41.10%. Cohu has a consensus target price of $68.75, suggesting a potential downside of 2.26%. Given Power Integrations’ higher probable upside, equities analysts clearly believe Power Integrations is more favorable than Cohu.
Risk & Volatility
Profitability
This table compares Power Integrations and Cohu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Power Integrations | 5.58% | 5.50% | 4.79% |
| Cohu | -7.43% | -1.96% | -1.30% |
Earnings & Valuation
This table compares Power Integrations and Cohu”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Power Integrations | $443.50 million | 6.49 | $22.09 million | $0.45 | 114.44 |
| Cohu | $452.96 million | 7.35 | -$74.27 million | ($0.83) | -84.75 |
Power Integrations has higher earnings, but lower revenue than Cohu. Cohu is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.7% of Cohu shares are owned by institutional investors. 1.2% of Power Integrations shares are owned by insiders. Comparatively, 3.0% of Cohu shares are owned 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.
Summary
Power Integrations beats Cohu on 8 of the 15 factors compared between the two stocks.
About Power Integrations
Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. It also offers high-voltage diodes; InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, the company provides motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.
About Cohu
Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. The company was incorporated in 1947 and is headquartered in Poway, California.
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