Pericom Semiconductor (PSEM) and Power Integrations (POWI) Critical Survey

Pericom Semiconductor (NASDAQ: PSEM) and Power Integrations (NASDAQ:POWI) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.


Power Integrations pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. Pericom Semiconductor does not pay a dividend. Power Integrations pays out 29.8% of its earnings in the form of a dividend.


This table compares Pericom Semiconductor and Power Integrations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pericom Semiconductor 11.19% 6.74% 5.80%
Power Integrations 6.39% 12.70% 11.41%

Institutional & Insider Ownership

96.3% of Power Integrations shares are held by institutional investors. 4.3% of Power Integrations 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.

Valuation and Earnings

This table compares Pericom Semiconductor and Power Integrations’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pericom Semiconductor N/A N/A N/A $0.56 N/A
Power Integrations $431.76 million 4.97 $27.60 million $2.15 33.47

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

Analyst Recommendations

This is a summary of current ratings for Pericom Semiconductor and Power Integrations, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pericom Semiconductor 0 0 0 0 N/A
Power Integrations 0 3 2 0 2.40

Power Integrations has a consensus target price of $81.00, suggesting a potential upside of 12.58%.


Power Integrations beats Pericom Semiconductor on 8 of the 10 factors compared between the two stocks.

Pericom Semiconductor Company Profile

Pericom Semiconductor Corporation (Pericom) designs, develops and markets integrated circuits (ICs) and frequency control products (FCPs). The Company’s IC products include functions that support the connectivity, timing and signal conditioning of high-speed parallel and serial protocols that transfer data among a system’s microprocessor, memory and various peripherals, and between interconnected systems. The Company has four primary IC product categories: connectivity, switching, timing and signal integrity. Pericom’s FCPs are electronic components that provide frequency references, such as crystals and oscillators for computer, communication and consumer electronic products. It enables serial connectivity with solutions for the computing, communications and consumer market segments. Its products are used in various applications, such as servers, storage, enterprise networks, telecommunications and embedded applications.

Power Integrations Company Profile

Power Integrations, Inc. designs, develops and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source to the type of power required for downstream use. The Company’s ICs used in alternating current (AC)-direct current (DC) power supply convert high-voltage AC from a wall outlet to the low-voltage DC required by electronic devices. The Company offers a range of products, such as TOPSwitch, TinySwitch, LinkSwitch and Hiper families. The Company also offers CapZero and SenZero families. The Company offers a range of high-voltage gate-driver products sold under the SCALE and SCALE-II product-family names. The DPA-Switch family of products is a monolithic high-voltage DC-DC power conversion IC designed specifically for use in distributed power architectures.

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