Financial Comparison: Energous (NASDAQ:WATT) vs. Texas Instruments (NASDAQ:TXN)

Energous (NASDAQ:WATT) and Texas Instruments (NASDAQ:TXN) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Profitability

This table compares Energous and Texas Instruments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energous	-76.37%	-28.67%	-24.91%
Texas Instruments	31.11%	35.77%	17.31%

Volatility and Risk

Energous has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Texas Instruments has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares Energous and Texas Instruments”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energous	$5.63 million	11.03	-$9.59 million	($2.21)	-5.08
Texas Instruments	$17.68 billion	13.37	$5.00 billion	$6.57	39.39

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

Insider & Institutional Ownership

4.3% of Energous shares are held by institutional investors. Comparatively, 85.0% of Texas Instruments shares are held by institutional investors. 0.2% of Energous shares are held by insiders. Comparatively, 0.6% of Texas Instruments shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Energous and Texas Instruments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energous	1	1	0	0	1.50
Texas Instruments	4	8	15	2	2.52

Texas Instruments has a consensus target price of $312.12, indicating a potential upside of 20.59%. Given Texas Instruments’ stronger consensus rating and higher possible upside, analysts clearly believe Texas Instruments is more favorable than Energous.

Summary

Texas Instruments beats Energous on 14 of the 15 factors compared between the two stocks.

About Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.