Head to Head Review: Navitas Semiconductor (NASDAQ:NVTS) & TranSwitch (OTCMKTS:TXCCQ)

TranSwitch (OTCMKTS:TXCCQ) and Navitas Semiconductor (NASDAQ:NVTS) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Institutional and Insider Ownership

46.1% of Navitas Semiconductor shares are held by institutional investors. 6.3% of TranSwitch shares are held by company insiders. Comparatively, 29.9% of Navitas Semiconductor shares are held by company 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for TranSwitch and Navitas Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TranSwitch	0	0	0	0	0.00
Navitas Semiconductor	2	5	2	0	2.00

Navitas Semiconductor has a consensus target price of $6.48, indicating a potential downside of 24.52%. Given TranSwitch’s higher probable upside, equities analysts clearly believe TranSwitch is more favorable than Navitas Semiconductor.

Risk & Volatility

TranSwitch has a beta of 22.56, meaning that its share price is 2,156% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 3.14, meaning that its share price is 214% more volatile than the S&P 500.

Profitability

This table compares TranSwitch and Navitas Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TranSwitch	N/A	N/A	N/A
Navitas Semiconductor	-220.85%	-14.86%	-13.13%

Earnings & Valuation

This table compares TranSwitch and Navitas Semiconductor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TranSwitch	N/A	N/A	N/A	N/A	N/A
Navitas Semiconductor	$83.30 million	23.77	-$84.60 million	($0.64)	-13.42

TranSwitch has higher earnings, but lower revenue than Navitas Semiconductor.

About TranSwitch

TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.