Sumco (OTCMKTS:SUMCF) vs. Transphorm (OTCMKTS:TGAN) Financial Comparison

Transphorm (OTCMKTS:TGAN) and Sumco (OTCMKTS:SUMCF) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Transphorm and Sumco, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transphorm	0	1	1	0	2.50
Sumco	0	0	2	0	3.00

Transphorm presently has a consensus target price of $5.75, indicating a potential upside of 94.92%. Given Transphorm’s higher possible upside, equities research analysts plainly believe Transphorm is more favorable than Sumco.

Earnings & Valuation

This table compares Transphorm and Sumco’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transphorm	$18.58 million	9.85	-$30.60 million	($0.67)	-4.40
Sumco	N/A	N/A	N/A	14.15	1.00

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

Profitability

This table compares Transphorm and Sumco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transphorm	-189.65%	-114.30%	-65.96%
Sumco	N/A	N/A	N/A

Institutional and Insider Ownership

62.0% of Transphorm shares are owned by institutional investors. Comparatively, 17.5% of Sumco shares are owned by institutional investors. 2.5% of Transphorm shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Sumco beats Transphorm on 7 of the 11 factors compared between the two stocks.

About Transphorm

Transphorm, Inc., a semiconductor company, develops, manufactures, and sells gallium nitride (GaN) semiconductor components for high voltage power conversion applications in Mainland China, Hong Kong, Taiwan, the United States, Japan, South Korea, India, and Europe. The company's products include GaN field effect transistors in various packages. Its GaN devices allows customers to design power systems creating functional value in various end products, including smartphone power adapters/fast-chargers, power supplies for datacenter servers/communication, industrial power converters, chargers/converters/inverters for electric vehicles, and other applications. The company offers its products through regional distributors and sales representatives. Transphorm, Inc. was founded in 2007 and is headquartered in Goleta, California.

About Sumco

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.