Reviewing e.Digital (OTCMKTS:EDIG) & Transphorm (OTCMKTS:TGAN)

e.Digital (OTCMKTS:EDIGGet Rating) and Transphorm (OTCMKTS:TGANGet Rating) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for e.Digital and Transphorm, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
e.Digital 0 0 0 0 N/A
Transphorm 0 1 1 0 2.50

Transphorm has a consensus price target of $7.75, suggesting a potential upside of 97.20%. Given Transphorm’s higher possible upside, analysts plainly believe Transphorm is more favorable than e.Digital.

Insider & Institutional Ownership

64.2% of Transphorm shares are held by institutional investors. 2.3% of e.Digital shares are held by insiders. Comparatively, 2.9% of Transphorm shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

e.Digital has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Transphorm has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares e.Digital and Transphorm’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
e.Digital $700,000.00 0.04 -$1.27 million N/A N/A
Transphorm $18.25 million 12.79 -$10.23 million ($0.47) -8.36

e.Digital has higher earnings, but lower revenue than Transphorm.


This table compares e.Digital and Transphorm’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
e.Digital N/A N/A N/A
Transphorm -146.92% -72.87% -45.74%


Transphorm beats e.Digital on 6 of the 11 factors compared between the two stocks.

About e.Digital

(Get Rating)

e.Digital Corporation engages in developing and marketing an intellectual property portfolio of context and interpersonal awareness systems, advanced data security technologies, secure communication technologies, and other technologies. It is involved in licensing and enforcing its Nunchi portfolio of patents related to context and interpersonal awareness systems; microSignet data security technology based on characteristics in semi-conductors; Synap security system, method, and apparatus to solve the issues of encryption key generation and exchange; and other technologies. The company was formerly known as Norris Communications, Inc. and changed its name to e.Digital Corporation in January 1999. e.Digital Corporation was founded in 1988 and is based in San Diego, California.

About Transphorm

(Get Rating)

Transphorm, Inc., a semiconductor company, develops, manufactures, and sells gallium nitride (GaN) semiconductor components for use in power conversion in Mainland China, Hong Kong, Taiwan, the United States, Japan, South Korea, and Europe. The company's products include GaN field effect transistors in various packages. Its GaN devices allows customers to design power systems creating functional value in various end products, including smartphone power adapters/fast-chargers, power supplies for datacenter servers/communication, industrial power converters, chargers/converters/inverters for electric vehicles, and other applications. The company offers its products through regional distributors and sales representatives. Transphorm, Inc. was founded in 2007 and is headquartered in Goleta, California.

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