Comparing Diodes (NASDAQ:DIOD) and Impinj (NASDAQ:PI)

Diodes (NASDAQ:DIOD) and Impinj (NASDAQ:PI) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Diodes and Impinj, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diodes	1	1	2	1	2.60
Impinj	0	1	6	0	2.86

Diodes currently has a consensus target price of $55.00, indicating a potential upside of 3.68%. Impinj has a consensus target price of $163.29, indicating a potential downside of 16.41%. Given Diodes’ higher probable upside, analysts plainly believe Diodes is more favorable than Impinj.

Earnings & Valuation

This table compares Diodes and Impinj”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diodes	$1.31 billion	1.88	$44.02 million	$1.37	38.72
Impinj	$366.09 million	15.52	$40.84 million	$0.01	19,534.00

Diodes has higher revenue and earnings than Impinj. Diodes is trading at a lower price-to-earnings ratio than Impinj, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Diodes has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Impinj has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Profitability

This table compares Diodes and Impinj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diodes	4.59%	2.98%	2.35%
Impinj	0.18%	8.14%	2.64%

Insider & Institutional Ownership

99.2% of Diodes shares are owned by institutional investors. 2.3% of Diodes shares are owned by insiders. Comparatively, 51.0% of Impinj 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.

Summary

Impinj beats Diodes on 8 of the 15 factors compared between the two stocks.

About Diodes

Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.

About Impinj

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.