Transphorm (OTCMKTS:TGAN) & Advantest (OTCMKTS:ATEYY) Financial Contrast

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

Institutional & Insider Ownership

66.4% of Transphorm shares are held by institutional investors. Comparatively, 0.0% of Advantest shares are held by institutional investors. 2.5% of Transphorm shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Transphorm and Advantest, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transphorm	0	0	0	0	N/A
Advantest	0	0	0	0	N/A

Profitability

This table compares Transphorm and Advantest’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%
Advantest	14.65%	18.20%	11.61%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transphorm	$18.76 million	16.85	-$30.60 million	($0.69)	-7.39
Advantest	$3.37 billion	9.72	$429.80 million	$0.58	76.53

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

Volatility and Risk

Transphorm has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Advantest has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Summary

Advantest beats Transphorm on 8 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 Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics related products in Japan, the Americas, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Services, Support and Others segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease and other businesses. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.