Diodes (NASDAQ:DIOD) & Oxford Instruments (OTCMKTS:OXINF) Critical Analysis

Oxford Instruments (OTCMKTS:OXINF) and Diodes (NASDAQ:DIOD) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

Oxford Instruments has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Diodes has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Profitability

This table compares Oxford Instruments and Diodes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oxford Instruments	N/A	N/A	N/A
Diodes	7.12%	5.76%	4.43%

Insider and Institutional Ownership

99.2% of Diodes shares are owned by institutional investors. 2.3% of Diodes shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Oxford Instruments and Diodes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Instruments	0	0	0	0	N/A
Diodes	0	3	2	0	2.40

Diodes has a consensus price target of $73.20, indicating a potential upside of 14.97%. Given Diodes’ higher probable upside, analysts clearly believe Diodes is more favorable than Oxford Instruments.

Valuation and Earnings

This table compares Oxford Instruments and Diodes”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Instruments	$536.00 million	3.29	$70.63 million	N/A	N/A
Diodes	$1.35 billion	2.18	$227.18 million	$3.67	17.35

Diodes has higher revenue and earnings than Oxford Instruments.

Summary

Diodes beats Oxford Instruments on 10 of the 11 factors compared between the two stocks.

About Oxford Instruments

Oxford Instruments plc designs and supplies technology products and services in Europe, North America, Asia, and internationally. It operates through three segments: Materials & Characterisation, Research & Discovery, and Service & Healthcare. The company offers atomic force, electron, and raman microscopy; deposition and etch tools; low temperature systems; optical imaging; nuclear magnetic resonance, modular optical spectroscopy; and x-ray. Its products are used in various industries, such as advanced manufacturing, agriculture and food, astronomy, automotive and aerospace, bio imaging and life science, chemical and catalysis, energy generation and storage, forensics and environment, geology, petrology, mining, metals, alloys, composites, ceramics, pharma, photonics, polymers, quantum technologies, semiconductors, microelectronics, and data storage. Oxford Instruments plc was founded in 1959 and is headquartered in Abingdon, the United Kingdom.

About Diodes

Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.