Head to Head Review: Transphorm (OTCMKTS:TGAN) versus indie Semiconductor (NASDAQ:INDI)

Transphorm (OTCMKTS:TGAN) and indie Semiconductor (NASDAQ:INDI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Profitability

This table compares Transphorm and indie Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transphorm -261.98% N/A -136.48%
indie Semiconductor N/A -2,148.34% -5.29%

Valuation and Earnings

This table compares Transphorm and indie Semiconductor’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Transphorm $11.37 million 16.49 -$17.91 million ($0.56) -8.04
indie Semiconductor N/A N/A -$73.29 million ($0.15) -67.27

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

Analyst Ratings

This is a breakdown of recent ratings for Transphorm and indie Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transphorm 0 0 3 0 3.00
indie Semiconductor 0 0 3 0 3.00

Transphorm presently has a consensus price target of $10.17, suggesting a potential upside of 125.93%. indie Semiconductor has a consensus price target of $16.67, suggesting a potential upside of 65.18%. Given Transphorm’s higher probable upside, analysts clearly believe Transphorm is more favorable than indie Semiconductor.

Institutional and Insider Ownership

13.8% of indie Semiconductor shares are owned by institutional investors. 20.2% of indie Semiconductor shares are owned by 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.

Transphorm Company Profile

Transphorm, Inc. develops, manufactures, and sells gallium nitride (GaN) semiconductor components used in power conversion in Mainland China, Hong Kong, Taiwan, the United States, Japan, South Korea, and Europe. Its GaN devices allows customers to design smaller, lighter, and cooler power systems creating increased functional value in end products, including smartphone power adapters/fast-chargers, power supplies for datacenter servers/communication, industrial power converters, and chargers/converters/inverters for electric vehicles. The company offers its products through sales representatives and distributors. Transphorm, Inc. headquartered in Goleta, California.

indie Semiconductor Company Profile

indie Semiconductor, a fabless semiconductor company, designs and manufactures custom mixed-signal microcontrollers for automotive, medical, industrial, and consumer applications. The company offers custom solutions, standard products, and building blocks. It also integrates analog sub-systems, such as RF transceivers, power management circuitry, and sensor interfaces. The company's microcontroller-based chips integrate functions for sensing, processing, controlling, and communicating. indie Semiconductor was formerly known as AyDeeKay LLC and changed its name to indie Semiconductor in December 2014. The company was founded in 2007 and is based in Aliso Viejo, California.

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