Adesto Technologies (NASDAQ:IOTS) & NXP Semiconductors (NASDAQ:NXPI) Financial Analysis

Adesto Technologies (NASDAQ:IOTS) and NXP Semiconductors (NASDAQ:NXPI) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Adesto Technologies and NXP Semiconductors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adesto Technologies 0 7 1 0 2.13
NXP Semiconductors 0 5 16 1 2.82

Adesto Technologies currently has a consensus target price of $11.96, suggesting a potential downside of 4.61%. NXP Semiconductors has a consensus target price of $128.61, suggesting a potential upside of 9.43%. Given NXP Semiconductors’ stronger consensus rating and higher possible upside, analysts plainly believe NXP Semiconductors is more favorable than Adesto Technologies.

Insider and Institutional Ownership

85.1% of Adesto Technologies shares are owned by institutional investors. Comparatively, 88.3% of NXP Semiconductors shares are owned by institutional investors. 12.4% of Adesto Technologies shares are owned by company insiders. Comparatively, 0.6% of NXP Semiconductors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Adesto Technologies and NXP Semiconductors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adesto Technologies -22.73% -23.38% -8.97%
NXP Semiconductors -0.14% 19.47% 8.89%

Earnings & Valuation

This table compares Adesto Technologies and NXP Semiconductors’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adesto Technologies $118.17 million 3.32 -$26.86 million N/A N/A
NXP Semiconductors $8.88 billion 3.69 $243.00 million $8.04 14.62

NXP Semiconductors has higher revenue and earnings than Adesto Technologies.

Volatility and Risk

Adesto Technologies has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Summary

NXP Semiconductors beats Adesto Technologies on 12 of the 14 factors compared between the two stocks.

About Adesto Technologies

Adesto Technologies Corporation, together with its subsidiaries, provides application-specific semiconductors and embedded systems that offer the building blocks of Internet of Things (IoT) edge devices operating on networks worldwide. The company's portfolio of semiconductor and embedded technologies are optimized for connected IoT devices and systems used in industrial, consumer, communications, and medical applications. Its offerings enable customers to differentiate their IoT systems and product designs. The company's technology is used in various connected products, such as smart utility meters, wearable fitness trackers and medical monitors, home automation, building control systems, fleet management systems, and satellite communications applications. Its products portfolio includes IoT edge servers, routers, network nodes, and communication modules, as well as analog, digital, and non-volatile memory technologies, application-specific integrated circuits distributed network systems, and IP cores. The company also provides software, software development kits, tools, and system solutions to help speed time to market for customers. Its solutions enable seamless access to data, allowing for intelligent control of things in today's connected world. Adesto Technologies Corporation was incorporated in 2006 and is headquartered in Santa Clara, California.

About NXP Semiconductors

NXP Semiconductors N.V., a semiconductor company, provides high performance mixed signal solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide. The company offers products for audio and visual head-end unit applications, such as single-chip radio solutions, multi-standard radios, audio amplifiers and power analog products, and i.MX applications processors; in-vehicle networking products; two-way secure entry products; various sensors and microcontrollers; power management solutions; battery cell controllers; and solutions for radar, vision, vehicle-to-vehicle, and vehicle-to-infrastructure systems. It also provides secure identification solutions, such as passive RF connectivity devices; microcontroller devices; and secure real-time operating system software products to facilitate the encryption-decryption of data, and the interaction with the reader infrastructure systems. In addition, the company delivers semiconductor-based technologies for connected devices comprising microcontrollers, secure mobile transaction solutions, and various connectivity solutions; and offers digital networking processors, secure interface and system management products, high-performance RF power-amplifiers, and smart antennae solutions. Its product solutions are used in a range of application areas, including automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer, computing, and software solutions for mobile phones. The company markets its products to various original equipment manufacturers, original design manufacturers, contract manufacturers, and distributors. The company was formerly known as KASLION Acquisition B.V and changed its name to NXP Semiconductors N.V. in May 2010. NXP Semiconductors N.V. was founded in 2006 and is headquartered in Eindhoven, the Netherlands.

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