Reviewing SiTime (NASDAQ:SITM) and Ideal Power (NASDAQ:IPWR)

Ideal Power (NASDAQ:IPWR) and SiTime (NASDAQ:SITM) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ideal Power and SiTime, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ideal Power	0	0	1	0	3.00
SiTime	1	0	3	0	2.50

Ideal Power currently has a consensus price target of $14.00, suggesting a potential upside of 93.10%. SiTime has a consensus price target of $208.75, suggesting a potential downside of 9.78%. Given Ideal Power’s stronger consensus rating and higher possible upside, research analysts plainly believe Ideal Power is more favorable than SiTime.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ideal Power	-7,152.45%	-55.69%	-49.80%
SiTime	-53.55%	-9.89%	-7.56%

Institutional and Insider Ownership

16.4% of Ideal Power shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 5.0% of Ideal Power shares are owned by insiders. Comparatively, 2.3% of SiTime shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ideal Power	$142,107.00	415.69	-$9.95 million	($1.40)	-5.18
SiTime	$176.99 million	30.54	-$80.54 million	($4.14)	-55.89

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

Risk & Volatility

Ideal Power has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, SiTime has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

About Ideal Power

Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.

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.