Power Integrations (NASDAQ:POWI – Get Free Report) and Axcelis Technologies (NASDAQ:ACLS – Get Free Report) are both mid-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Institutional & Insider Ownership
90.0% of Axcelis Technologies shares are held by institutional investors. 1.2% of Power Integrations shares are held by company insiders. Comparatively, 0.5% of Axcelis Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Power Integrations and Axcelis Technologies’ 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% |
| Axcelis Technologies | 10.71% | 11.69% | 8.89% |
Volatility and Risk
Power Integrations has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Axcelis Technologies has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Power Integrations and Axcelis Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Power Integrations | 0 | 4 | 4 | 0 | 2.50 |
| Axcelis Technologies | 1 | 3 | 1 | 0 | 2.00 |
Power Integrations presently has a consensus target price of $68.83, suggesting a potential upside of 39.56%. Axcelis Technologies has a consensus target price of $148.67, suggesting a potential upside of 30.72%. Given Power Integrations’ stronger consensus rating and higher probable upside, analysts clearly believe Power Integrations is more favorable than Axcelis Technologies.
Valuation & Earnings
This table compares Power Integrations and Axcelis Technologies”s 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 | 6.21 | $22.09 million | $0.45 | 109.60 |
| Axcelis Technologies | $866.07 million | 4.06 | $120.24 million | $2.98 | 38.16 |
Axcelis Technologies has higher revenue and earnings than Power Integrations. Axcelis Technologies is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.
Summary
Axcelis Technologies beats Power Integrations on 8 of the 14 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 Axcelis Technologies
Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia Pacific. The company offers high energy, high current, and medium current implanters for various application requirements. It also provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. It sells its equipment and services to semiconductor chip manufacturers through its direct sales force. The company was founded in 1978 and is headquartered in Beverly, Massachusetts.
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