ATI vs IDT Which Should You Buy?

ATI Technologies Inc. (ATI) and Integrated Device Technology Inc. (IDT) are two prominent players in the tech industry, specializing in graphics and integrated circuit solutions, respectively. Both companies have experienced fluctuations in their stock prices over the years, with ATI known for its innovative graphics products and IDT for its efficient chip designs. Investors often compare and contrast ATI and IDT stocks to determine which offers better growth potential and value in the competitive tech market.

ATI or IDT?

When comparing ATI and IDT, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ATI and IDT.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ATI has a dividend yield of -%, while IDT has a dividend yield of 0.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ATI reports a 5-year dividend growth of 0.00% year and a payout ratio of 4.25%. On the other hand, IDT reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.93%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ATI P/E ratio at 20.34 and IDT's P/E ratio at 20.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ATI P/B ratio is 4.27 while IDT's P/B ratio is 5.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ATI has seen a 5-year revenue growth of 1.12%, while IDT's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ATI's ROE at 26.03% and IDT's ROE at 29.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.70 for ATI and $49.80 for IDT. Over the past year, ATI's prices ranged from $38.04 to $68.92, with a yearly change of 81.18%. IDT's prices fluctuated between $27.09 and $51.42, with a yearly change of 89.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.