PI - Itron vs. Impinj: Which Internet of Things Stock is a Better Buy?

The Internet of Things (IoT) is the wave of the future. It won't be long until the majority of the devices people and businesses use are connected to the internet.

IDC, a tech analysis firm, predicts more than 41 billion IoT devices will be connected to the web within the next four years. From smart home devices to wearable devices, smart automotive equipment, and web-connected solutions for businesses in the industrial space, IoT will soon play a role in nearly every aspect of life and business.

Let's shift our focus to pinpointing the best IoT stocks. Sort through the publicly traded companies in this industry, and you will find plenty of appealing prospects. Below, I provide a look at two popular IoT stocks: Itron (ITRI) and Impinj (PI).

Itron (ITRI)

ITRI, based in Liberty Lake, WA, was founded in the late 70s. This tech company provides smart meters and meter communications systems ranging from communication modules to networks, sensors, data analytics, and more. ITRI's IoT solutions help municipalities and utilities operate their critical infrastructure.

ITRI has a forward P/E ratio of 39.93. This elevated ratio is a sign that ITRI is overpriced at $96 per share. The company has an overall grade of B, translating into a Buy rating in our POWR Ratings system. ITRI also has a Momentum Grade of A. You can find out how ITRI grades in the Growth, Value, Stability, Sentiment, and Quality components by clicking here.

ITRI is ranked 22nd out of 85 stocks in the Industrial - Services space. Click here to find out other top stocks in this industry. Analysts believe ITRI is underpriced, setting an average target price of $115.33. This means the stock has a potential upside of 17%. Across the prior 168 days, ITRI's average analyst target price has increased. Five analysts rate the stock a Strong Buy, and five rate it a Buy.

Impinj (PI)

PI makes referral and information network radio frequency tech solutions for businesses in many industries ranging from food and beverage to pharmaceutical, retail, and healthcare. PI sells Indy Reader Chips containing integrated radio chips and supporting SDKs, RFID-related products, Monza Tag Chips, and more.

Based in Seattle, Washington, PI has an overall grade of D, which is a Sell rating in our POWR Ratings system. The stock has a Value Grade of D and Cs in the Momentum, Quality, and Sentiment components. You can find out how PI fares in the Stability and Growth components by clicking here. 

PI is ranked 86th of 99 stocks in the Semiconductor and Wireless Chip industry. Click here to find the top stocks in this industry. PI has a beta of 2.32, which means the stock is much more volatile than the market. 

Click here to check out our Semiconductor Industry Report for 2021

Which is the Better Buy?

ITRI is the better play. ITRI has a Buy rating in the POWR Ratings, while PI has a sell rating. The company is also ranked high in its industry, while PI is near the bottom of its industry. If you want a piece of the IoT pie, ITRI is the better buy.

ITRI shares were trading at $96.40 per share on Wednesday afternoon, down $1.88 (-1.91%). Year-to-date, ITRI has gained 0.52%, versus a 16.98% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.

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