Reviewing GlobalFoundries (NASDAQ:GFS) & Impinj (NASDAQ:PI)

Impinj (NASDAQ:PI) and GlobalFoundries (NASDAQ:GFS) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Profitability

This table compares Impinj and GlobalFoundries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Impinj	-3.45%	8.50%	2.87%
GlobalFoundries	-1.68%	6.55%	4.32%

Volatility & Risk

Impinj has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Impinj and GlobalFoundries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Impinj	1	2	7	1	2.73
GlobalFoundries	2	8	4	0	2.14

Impinj presently has a consensus target price of $226.33, suggesting a potential upside of 38.39%. GlobalFoundries has a consensus target price of $40.67, suggesting a potential upside of 17.40%. Given Impinj’s stronger consensus rating and higher possible upside, equities analysts plainly believe Impinj is more favorable than GlobalFoundries.

Earnings and Valuation

This table compares Impinj and GlobalFoundries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Impinj	$359.80 million	13.69	$40.84 million	($0.44)	-371.70
GlobalFoundries	$6.75 billion	2.84	-$265.00 million	($0.21)	-164.95

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

Summary

Impinj beats GlobalFoundries on 8 of the 13 factors compared between the two stocks.

About Impinj

Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.