GSI Technology (GSIT) and DSP Group (NASDAQ:DSPG) Financial Comparison

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DSP Group (NASDAQ:DSPG) and GSI Technology (NASDAQ:GSIT) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Institutional and Insider Ownership

82.2% of DSP Group shares are owned by institutional investors. Comparatively, 28.1% of GSI Technology shares are owned by institutional investors. 5.3% of DSP Group shares are owned by insiders. Comparatively, 36.3% of GSI Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for DSP Group and GSI Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DSP Group 0 0 3 0 3.00
GSI Technology 0 1 0 0 2.00

DSP Group currently has a consensus target price of $15.67, suggesting a potential upside of 23.95%. Given DSP Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe DSP Group is more favorable than GSI Technology.

Profitability

This table compares DSP Group and GSI Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DSP Group -1.44% 3.96% 3.16%
GSI Technology -7.02% -3.75% -3.25%

Valuation & Earnings

This table compares DSP Group and GSI Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DSP Group $124.75 million 2.25 -$3.00 million $0.17 74.35
GSI Technology $42.64 million 3.46 -$4.51 million N/A N/A

DSP Group has higher revenue and earnings than GSI Technology.

Volatility and Risk

DSP Group has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, GSI Technology has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Summary

DSP Group beats GSI Technology on 9 of the 12 factors compared between the two stocks.

About DSP Group

DSP Group, Inc., a fabless semiconductor company, provides wireless and audio chipset solutions for converged communications worldwide. It operates through three segments: Home, Office, and SmartVoice. The company provides a portfolio of wireless chipsets that integrate DECT/CAT-iq, ULE, Wi-Fi, PSTN, HDClear, video, and VoIP technologies. It also enables converged voice, audio, video, and data connectivity across various mobile, consumer, and enterprise products, including mobile phones, IoT and wearable devices, connected multimedia screens, home automation and security, cordless phones, VoIP systems, and home gateways. The company sells its products primarily through distributors, as well as directly to original equipment manufacturers and original design manufacturers. DSP Group, Inc. was founded in 1979 and is headquartered in Milpitas, California.

About GSI Technology

GSI Technology, Inc., a fabless semiconductor company, designs, develops, and markets memory products primarily for the networking and telecommunications markets in the United States, China, Singapore, the Netherlands, and internationally. It offers synchronous static random access memory (SRAM) products, such as BurstRAMs for microprocessor cache applications; No Bus Turnaround SRAMs to address the needs of moderate performance networking applications; SigmaQuad and SigmaDDR products that are double data rate and quad data rate synchronous SRAMs; and radiation-hardened SRAMs for aerospace and military applications, such as networking satellites and missiles. The company also provides low latency dynamic random access memory products. Its products are incorporated in a range of networking and telecommunications equipment, including core routers, multi-service access routers, universal gateways, enterprise edge routers, service provider edge routers, optical edge routers, fast Ethernet switches, wireless base stations, and network access equipment. The company markets its products through a network of independent sales representatives and distributors to original equipment manufacturers, as well as to military, industrial, test and measurement equipment, automotive, and medical markets. GSI Technology, Inc. was founded in 1995 and is headquartered in Sunnyvale, California.

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