Contrasting Infineon Technologies (OTCMKTS:IFNNY) & Advanced Energy Industries (NASDAQ:AEIS)

Advanced Energy Industries (NASDAQ:AEIS) and Infineon Technologies (OTCMKTS:IFNNY) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Risk and Volatility

Advanced Energy Industries has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Infineon Technologies has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500.

Profitability

This table compares Advanced Energy Industries and Infineon Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advanced Energy Industries	10.77%	20.75%	10.39%
Infineon Technologies	8.37%	11.39%	6.39%

Institutional and Insider Ownership

99.7% of Advanced Energy Industries shares are owned by institutional investors. Comparatively, 0.2% of Infineon Technologies shares are owned by institutional investors. 1.3% of Advanced Energy Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Advanced Energy Industries and Infineon Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advanced Energy Industries	$1.80 billion	5.37	$148.40 million	$5.36	45.01
Infineon Technologies	$16.21 billion	4.72	$1.12 billion	$1.13	51.95

Infineon Technologies has higher revenue and earnings than Advanced Energy Industries. Advanced Energy Industries is trading at a lower price-to-earnings ratio than Infineon Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

Advanced Energy Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.2%. Infineon Technologies pays an annual dividend of $0.28 per share and has a dividend yield of 0.5%. Advanced Energy Industries pays out 7.5% of its earnings in the form of a dividend. Infineon Technologies pays out 24.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Advanced Energy Industries and Infineon Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advanced Energy Industries	0	2	11	1	2.93
Infineon Technologies	0	2	1	1	2.75

Advanced Energy Industries currently has a consensus price target of $409.50, suggesting a potential upside of 69.75%. Given Advanced Energy Industries’ stronger consensus rating and higher probable upside, equities analysts plainly believe Advanced Energy Industries is more favorable than Infineon Technologies.

Summary

Advanced Energy Industries beats Infineon Technologies on 11 of the 16 factors compared between the two stocks.

About Advanced Energy Industries

Advanced Energy Industries, Inc. provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition. It also provides high and low voltage power products used in a range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data centers computing, networking, and telecommunications. In addition, the company supplies sensing, controls, and instrumentation products for advanced measurement and calibration of power and temperature. Further, the company provides calibration, conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. Further, it offers warranty and after-market repair services. It offers its products through a direct sales force, independent sales representatives, channel partners, and distributors. Advanced Energy Industries, Inc. was incorporated in 1981 and is headquartered in Denver, Colorado.

About Infineon Technologies

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and semiconductor-based solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and memory ICs; transceivers; diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company’s Green Industrial Power segment provides bare dies, discrete IGBTs, and driver ICs; SiC diodes, MOSFETs, and modules; and IGBT modules for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers chips for gas and pressure sensors, and MEMS microphones; 3D ToF sensors; control ICs; discrete low-, mid-, and high-voltage power MOSFET; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; SiC diode and MOSFETs; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, IoT, LED and conventional lighting systems, microinverter, mobile devices, power management, and special applications. The company’s Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, IoT, mobile communication, payment system, ticketing, access control, and computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Neubiberg, Germany.