Analyzing HTC (OTCMKTS:HTCXF) and InterDigital (NASDAQ:IDCC)

HTC (OTCMKTS:HTCXF) and InterDigital (NASDAQ:IDCC) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Profitability

This table compares HTC and InterDigital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HTC	48.73%	6.66%	3.20%
InterDigital	51.92%	53.44%	25.99%

Analyst Ratings

This is a summary of recent recommendations and price targets for HTC and InterDigital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HTC	0	0	0	0	0.00
InterDigital	0	0	1	0	3.00

InterDigital has a consensus price target of $160.00, indicating a potential downside of 42.05%. Given InterDigital’s stronger consensus rating and higher possible upside, analysts clearly believe InterDigital is more favorable than HTC.

Earnings and Valuation

This table compares HTC and InterDigital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HTC	$95.93 million	N/A	-$106.31 million	($0.12)	-10.19
InterDigital	$868.52 million	8.20	$358.61 million	$14.03	19.68

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

Insider & Institutional Ownership

99.8% of InterDigital shares are held by institutional investors. 2.8% of InterDigital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

InterDigital beats HTC on 11 of the 11 factors compared between the two stocks.

About HTC

HTC Corporation designs and manufactures mobile devices. Its portfolio includes smartphones and tablets powered by the Android or Windows Phone operating systems. It offers its products under the brand named HTC, including HTC Wildfire, HTC Desire, HTC Flyer, HTC ChaCha, HTC Salsa, HTC Incredible S, HTC Sensation, HTC 7 Mozart, HTC Aria and HTC 7 Trophy, among others. HTC Corporation is headquartered in Taoyuan County, Taiwan.

About InterDigital

InterDigital, Inc. operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G, 5G, advanced and 6G, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and engages in the research and development of artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, and base stations; televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.