Critical Review: Solitron Devices (OTCMKTS:SODI) & Transphorm (OTCMKTS:TGAN)

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

Analyst Recommendations

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

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

Insider and Institutional Ownership

15.3% of Solitron Devices shares are held by institutional investors. Comparatively, 66.4% of Transphorm shares are held by institutional investors. 27.0% of Solitron Devices shares are held by company insiders. Comparatively, 2.5% of Transphorm shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solitron Devices	N/A	N/A	N/A	$0.32	56.36
Transphorm	$18.76 million	16.85	-$30.60 million	($0.69)	-7.39

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

Summary

Solitron Devices beats Transphorm on 6 of the 8 factors compared between the two stocks.

About Solitron Devices

Solitron Devices, Inc. designs, develops, manufactures, and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The company offers various bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field effect transistors, field effect transistors, and other related products. It also provides joint army/navy transistors, diodes, and standard military drawings voltage regulators. The company's semiconductor products are used as components of military, commercial, and aerospace electronic equipment, such as ground and airborne radar systems, power distribution systems, missiles, missile control systems, satellites, and space applications, as well as for non-military, scientific, and industrial applications. It operates in the United States, Canada, Latin America, the Far East, and the Middle East. The company was incorporated in 1959 and is headquartered in West Palm Beach, Florida.

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.