Critical Comparison: Teledyne Technologies (TDY) & InvenSense (NYSE:INVN)

Teledyne Technologies (NYSE: TDY) and InvenSense (NYSE:INVN) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Profitability

This table compares Teledyne Technologies and InvenSense’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teledyne Technologies 8.44% 13.80% 6.82%
InvenSense -20.65% -18.29% -11.24%

Valuation and Earnings

This table compares Teledyne Technologies and InvenSense’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Teledyne Technologies $2.32 billion 2.42 $420.20 million $5.44 29.20
InvenSense N/A N/A N/A ($0.58) -22.40

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

Volatility and Risk

Teledyne Technologies has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, InvenSense has a beta of 2.58, suggesting that its stock price is 158% more volatile than the S&P 500.

Institutional & Insider Ownership

82.9% of Teledyne Technologies shares are held by institutional investors. Comparatively, 46.5% of InvenSense shares are held by institutional investors. 3.3% of Teledyne Technologies shares are held by company insiders. Comparatively, 14.2% of InvenSense shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Teledyne Technologies and InvenSense, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teledyne Technologies 0 1 1 0 2.50
InvenSense 0 4 2 0 2.33

Teledyne Technologies currently has a consensus price target of $153.50, suggesting a potential downside of 3.36%. InvenSense has a consensus price target of $11.33, suggesting a potential downside of 12.75%. Given Teledyne Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Teledyne Technologies is more favorable than InvenSense.

Summary

Teledyne Technologies beats InvenSense on 8 of the 11 factors compared between the two stocks.

Teledyne Technologies Company Profile

Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets. The Company’s segments include Instrumentation, Digital Imaging, Aerospace and Defense Electronics, and Engineered Systems. Instrumentation segment provides monitoring and control instruments for marine, environmental, industrial and other applications, as well as electronic test and measurement equipment. Digital Imaging segment includes sensors, cameras and systems, within the visible, infrared, ultraviolet and X-ray spectra. Aerospace and Defense Electronics segment provides electronic components and subsystems and communications products, including defense electronics. Engineered Systems segment provides systems engineering and integration and technology development, as well as manufacturing solutions.

InvenSense Company Profile

InvenSense, Inc. (InvenSense) is engaged in designing, developing, marketing and selling of sensor system-on-chip (SoC), including accelerometers, gyroscopes and microphones for the mobile, wearable, smart home, gaming, industrial and automotive market segments. The Company delivers solutions based on its motion and sound technology; focused on solutions, such as smartphones, tablets, wearables, console and portable video gaming devices, digital television and set-top box remote controls, fitness accessories, sports equipment, digital still cameras, automobiles, ultra-books, laptops, hearing aids, stabilization systems, tools, navigation devices, remote controlled toys and other household consumer and industrial devices. Its motion solutions detect and track an object’s motion in three-dimensional space.

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