Head to Head Comparison: InterDigital Wireless (IDCC) versus Patriot Scientific (PTSC)

Patriot Scientific (OTCMKTS:PTSC) and InterDigital Wireless (NASDAQ:IDCC) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

This table compares Patriot Scientific and InterDigital Wireless’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Patriot Scientific N/A N/A -$1.20 million N/A N/A
InterDigital Wireless $307.40 million 7.33 $63.87 million $1.81 38.15

InterDigital Wireless has higher revenue and earnings than Patriot Scientific.

Dividends

InterDigital Wireless pays an annual dividend of $1.40 per share and has a dividend yield of 2.0%. Patriot Scientific does not pay a dividend. InterDigital Wireless pays out 77.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InterDigital Wireless has raised its dividend for 5 consecutive years.

Volatility and Risk

Patriot Scientific has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, InterDigital Wireless has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Patriot Scientific and InterDigital Wireless, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patriot Scientific 0 0 0 0 N/A
InterDigital Wireless 0 0 4 0 3.00

InterDigital Wireless has a consensus price target of $99.00, suggesting a potential upside of 43.35%. Given InterDigital Wireless’ higher possible upside, analysts clearly believe InterDigital Wireless is more favorable than Patriot Scientific.

Institutional & Insider Ownership

77.4% of InterDigital Wireless shares are owned by institutional investors. 1.0% of Patriot Scientific shares are owned by insiders. Comparatively, 2.0% of InterDigital Wireless shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Patriot Scientific and InterDigital Wireless’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patriot Scientific N/A -38.48% -36.64%
InterDigital Wireless 20.78% 7.95% 4.81%

Summary

InterDigital Wireless beats Patriot Scientific on 12 of the 13 factors compared between the two stocks.

Patriot Scientific Company Profile

Patriot Scientific Corporation focuses on commercializing microprocessor technologies through broad and open licensing. The company was founded in 1987 and is based in Carlsbad, California.

InterDigital Wireless Company Profile

InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. It provides technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G and IEEE 802-related products and networks. The company develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, and 4G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G NR, LTE-Advanced, and cellular Internet of Things (IoT) areas, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. It also provides video encoding and transmission technologies; technologies to enable interconnection for various access types comprising cellular, WLAN, and LPWA, as well as IoT service frameworks; interoperability and scalability solutions through oneMPOWER platform; and oneTRANSPORT data marketplace that offers common interface to vraious service providers allowing public authorities to control and monetize, and companies to access IoT data in real-time. In addition, the company engages in the development of technologies in the areas of security and analytics, sensor technologies, and other areas. Its patented technologies are used in various products that include cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, which comprise base stations; components, dongles, and modules for wireless devices; and IoT devices and software platforms. As of December 31, 2018, the company had a portfolio of approximately 34,000 patents and patent applications related fundamental technologies that enable wireless communications, video encoding, display technology, and other areas. InterDigital, Inc. was founded in 1972 and is headquartered in Wilmington, Delaware.

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