Critical Survey: NXP Semiconductors (NASDAQ:NXPI) and Impinj (NASDAQ:PI)

Impinj (NASDAQ:PI) and NXP Semiconductors (NASDAQ:NXPI) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

90.5% of NXP Semiconductors shares are owned by institutional investors. 6.8% of Impinj shares are owned by company insiders. Comparatively, 0.1% of NXP Semiconductors shares are owned by company 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.

Profitability

This table compares Impinj and NXP Semiconductors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Impinj	-7.26%	5.23%	2.09%
NXP Semiconductors	22.56%	27.83%	11.07%

Valuation & Earnings

This table compares Impinj and NXP Semiconductors”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Impinj	$371.52 million	12.45	-$10.85 million	($0.92)	-164.52
NXP Semiconductors	$12.27 billion	4.71	$2.02 billion	$11.72	19.55

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

Volatility and Risk

Impinj has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Impinj and NXP Semiconductors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Impinj	1	3	6	0	2.50
NXP Semiconductors	1	8	16	0	2.60

Impinj presently has a consensus target price of $179.22, indicating a potential upside of 18.41%. NXP Semiconductors has a consensus target price of $307.05, indicating a potential upside of 33.99%. Given NXP Semiconductors’ stronger consensus rating and higher probable upside, analysts clearly believe NXP Semiconductors is more favorable than Impinj.

Summary

NXP Semiconductors beats Impinj on 11 of the 14 factors compared between the two stocks.

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.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.