Better Buy: NXP Semiconductors vs. Impinj

NXP Semiconductors (NASDAQ: NXPI) and Impinj (NASDAQ: PI) might not initially seem like direct competitors. NXP produces a wide range of automotive, communications infrastructure, and mobile chips, while Impinj sells RFID (radio frequency identification) chips for tracking products.

But NXP also sells RFID chips, and the two companies have been suing each other over the past year over alleged patent violations. Those cases haven't been resolved yet, but they highlight a brewing "David vs. Goliath" clash between Impinj, which is worth less than $1 billion, and NXP, a $44 billion chipmaking giant.

Will Impinj continue growing in NXP's shadow, or will competition from its larger rival and other macro headwinds keep the bulls away? Let's dig deeper into these two companies to find out.

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Source Fool.com