Financial Contrast: Impinj (PI) & Aeroflex (ARX)

Aeroflex (NYSE: ARX) and Impinj (NASDAQ:PI) are both rfid systems companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Insider and Institutional Ownership

82.7% of Impinj shares are owned by institutional investors. 15.2% of Impinj shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Aeroflex and Impinj, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aeroflex 0 0 2 0 3.00
Impinj 0 3 4 0 2.57

Aeroflex currently has a consensus price target of $22.50, suggesting a potential upside of Infinity. Impinj has a consensus price target of $35.80, suggesting a potential upside of 58.90%. Given Aeroflex’s stronger consensus rating and higher possible upside, research analysts plainly believe Aeroflex is more favorable than Impinj.

Valuation and Earnings

This table compares Aeroflex and Impinj’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aeroflex N/A N/A N/A ($0.93) N/A
Impinj $112.29 million 4.21 -$1.67 million ($0.38) -59.29

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

Profitability

This table compares Aeroflex and Impinj’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aeroflex N/A N/A N/A
Impinj -5.97% -1.15% -0.87%

About Aeroflex

Aeroflex Holding Corp. (Aeroflex Holding) is a provider of radio frequency (RF) and microwave integrated circuits, components and systems used in the design, development and maintenance of wireless communication systems. The Company’s solutions include microelectronic components and test and measurement equipment used by companies in the space, avionics and defense; commercial wireless communications, and medical and other markets. Its products include a range of RF, microwave and millimeter wave microelectronic components, integrated circuits (ICs), and analog and mixed-signal devices. It operates in two segments: Aeroflex Microelectronics Solutions (AMS) and Aeroflex Test Solutions (ATS). In February 2014, Aeroflex Holding Corp announced the acquisition of Shenick Network Systems. In September 2014, Cobham PLC completes Aeroflex acquisition.

About Impinj

Impinj, Inc. is a provider of RAIN radio frequency identification (RFID) solutions. The Company sells a platform that includes endpoint integrated circuits (ICs), reader ICs, readers and gateways that enable wireless connectivity to everyday items, and software that delivers Item Intelligence from endpoint reads. The Impinj Platform connects billions of everyday items, such as apparel, medical supplies, automobile parts, drivers’ licenses, food and luggage to applications, such as inventory management, patient safety, asset tracking and item authentication, delivering real-time information to businesses about items they create, manage, transport and sell. The Impinj Platform wirelessly delivers information about these items’ identity, location and authenticity, or Item Intelligence, to the digital world.

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