Rockley Photonics (NYSE:RKLY – Get Rating) and Power Integrations (NASDAQ:POWI – Get Rating) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.
Risk and Volatility
Rockley Photonics has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Get Rockley Photonics alerts:Valuation & Earnings
This table compares Rockley Photonics and Power Integrations' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rockley Photonics | $8.21 million | 14.08 | -$168.01 million | ($1.93) | -0.46 |
| Power Integrations | $703.28 million | 5.34 | $164.41 million | $3.08 | 20.92 |
Profitability
This table compares Rockley Photonics and Power Integrations' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rockley Photonics | -3,519.47% | -346.18% | -135.65% |
| Power Integrations | 25.83% | 22.44% | 20.07% |
Institutional & Insider Ownership
12.4% of Rockley Photonics shares are held by institutional investors. Comparatively, 97.4% of Power Integrations shares are held by institutional investors. 16.2% of Rockley Photonics shares are held by company insiders. Comparatively, 1.6% of Power Integrations shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for Rockley Photonics and Power Integrations, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rockley Photonics | 0 | 2 | 4 | 0 | 2.67 |
| Power Integrations | 0 | 0 | 2 | 0 | 3.00 |
Rockley Photonics currently has a consensus price target of $8.17, indicating a potential upside of 817.71%. Power Integrations has a consensus price target of $91.20, indicating a potential upside of 41.55%. Given Rockley Photonics' higher possible upside, equities research analysts plainly believe Rockley Photonics is more favorable than Power Integrations.
Summary
Power Integrations beats Rockley Photonics on 10 of the 14 factors compared between the two stocks.
About Rockley Photonics
(Get Rating)
Rockley Photonics Holdings Limited develops and supplies silicon photonics in the United Kingdom and internationally. It offers a platform, which comprises photonic integrated circuits in silicon with integrated III-V devices; application-specific electronic integrated circuits; photonic and electronic co-packaging, which are supported by and coupled with biosensing algorithms, artificial intelligence, cloud analytics, firmware/software, system architecture, and hardware design. The company also provides a biosensing platform for consumer wellness, long-term health trend monitoring, patient monitoring, early disease detection, nutrition management, and treatment of certain chronic diseases. Rockley Photonics Holdings Limited was founded in 2013 and is headquartered in Altrincham, the United Kingdom.
About Power Integrations
(Get Rating)
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; 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 force, 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.
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