SiTime (NASDAQ:SITM) & TranSwitch (OTCMKTS:TXCCQ) Head-To-Head Analysis

SiTime (NASDAQ:SITM) and TranSwitch (OTCMKTS:TXCCQ) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Volatility & Risk

SiTime has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, TranSwitch has a beta of 14.73, indicating that its share price is 1,373% more volatile than the S&P 500.

Insider and Institutional Ownership

84.3% of SiTime shares are held by institutional investors. 2.3% of SiTime shares are held by company insiders. Comparatively, 6.3% of TranSwitch shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares SiTime and TranSwitch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiTime	-60.46%	-10.53%	-8.40%
TranSwitch	N/A	N/A	N/A

Valuation & Earnings

This table compares SiTime and TranSwitch”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$154.81 million	26.50	-$80.54 million	($4.13)	-43.44
TranSwitch	N/A	N/A	N/A	N/A	N/A

TranSwitch has lower revenue, but higher earnings than SiTime.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SiTime and TranSwitch, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	1	0	3	0	2.50
TranSwitch	0	0	0	0	N/A

SiTime presently has a consensus target price of $130.00, indicating a potential downside of 27.53%.

Summary

TranSwitch beats SiTime on 5 of the 8 factors compared between the two stocks.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

About TranSwitch

TranSwitch Corporation, together with its subsidiaries, designs, develops, and supplies integrated circuit and intellectual property solutions that provide functionality for voice, data, and video communications equipment for the customer premises and network infrastructure markets. The company provides integrated multi-core network processor system-on-a-chip (SoC) solutions for fixed, 3G and 4G mobile, VoIP, and multimedia applications. It offers converged network infrastructure products, including infrastructure VoIP processors for wire-line and wireless carrier equipment; access VoIP processors; and EoS/EoPDH mappers and framers for carriers to transport data traffic over SONET, SDH, and PDH networks. The company also offers broadband customer premises equipment, such as connectivity solutions comprising HDMI, DisplayPort, MHL, HDP, Ethernet IP cores, and MHDP transceivers for consumer electronics, home network equipment, and industrial and automotive applications; and multi-service SoCs for customer premises equipment that support telephone voice, fax, and routing functionality over broadband access networks. TranSwitch Corporation sells its products to public network system original equipment manufacturers (OEMs), WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs; and government, universities, and private laboratories. The company offers its products directly in North America, Taiwan, China, Japan, Korea, and Europe, as well as through a network of distributors in North America, Asia, and Europe. TranSwitch Corporation was founded in 1988 and is headquartered in Shelton, Connecticut. On November 21, 2013, TranSwitch Corporation filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Connecticut.