Financial Contrast: Intermolecular (IMI) vs. Silicon Motion Technology Corporation (SIMO)

Intermolecular (NASDAQ: IMI) and Silicon Motion Technology Corporation (NASDAQ:SIMO) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current recommendations and price targets for Intermolecular and Silicon Motion Technology Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intermolecular 0 1 0 0 2.00
Silicon Motion Technology Corporation 0 3 10 0 2.77

Silicon Motion Technology Corporation has a consensus target price of $56.31, suggesting a potential upside of 16.49%. Given Silicon Motion Technology Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Silicon Motion Technology Corporation is more favorable than Intermolecular.

Risk & Volatility

Intermolecular has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Silicon Motion Technology Corporation has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares Intermolecular and Silicon Motion Technology Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Intermolecular $39.08 million 1.33 -$5.32 million ($0.38) -2.76
Silicon Motion Technology Corporation $562.80 million 3.07 $145.81 million $2.97 16.28

Silicon Motion Technology Corporation has higher revenue and earnings than Intermolecular. Intermolecular is trading at a lower price-to-earnings ratio than Silicon Motion Technology Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Intermolecular and Silicon Motion Technology Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intermolecular -47.22% -43.57% -35.71%
Silicon Motion Technology Corporation 18.91% 24.24% 17.85%

Dividends

Silicon Motion Technology Corporation pays an annual dividend of $0.79 per share and has a dividend yield of 1.6%. Intermolecular does not pay a dividend. Silicon Motion Technology Corporation pays out 26.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

38.0% of Intermolecular shares are owned by institutional investors. Comparatively, 81.2% of Silicon Motion Technology Corporation shares are owned by institutional investors. 45.4% of Intermolecular shares are owned by 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.

Summary

Silicon Motion Technology Corporation beats Intermolecular on 12 of the 15 factors compared between the two stocks.

About Intermolecular

Intermolecular, Inc. provides thin film solutions. The Company’s high productivity combinatorial (HPC) platform, which consists of its tempus processing tools, its automated characterization methods, and its Informatics analysis software, is purpose-built for research and development (R&D) using combinatorial process systems. It develops technology and Internet protocol (IP) rights focused on materials, processes, integration and device architectures in collaboration with its customers. Its HPC platform consists of tempus HPC processing, automated characterization and informatics and analysis software. The Company offers a series of wet processing tools and dry processing tools. Its informatics software includes workflow management software, analysis and reporting software, security and collaboration management software, and integration services. It caters to semiconductor device, semiconductor materials and equipment and clean energy market companies.

About Silicon Motion Technology Corporation

Silicon Motion Technology Corporation is a fabless semiconductor company. The Company designs, develops and markets low-power semiconductor solutions to original equipment manufacturers (OEMs) and other customers in the mobile storage and mobile communications markets. It is engaged in developing negative-AND (NAND) flash controller integrated circuits (ICs) for solid-state storage devices and specialty radio frequency (RF) ICs for mobile devices. In the mobile storage market, the Company’s products are controllers used in embedded storage products, such as Solid State Drives (SSDs), and Embedded Multimedia Cards (eMMCs), as well as expandable storage products, such as flash memory cards and universal serial bus (USB) flash drives. For the mobile communications market, the Company’s products are handset transceivers and mobile television (TV) System on Chips (SoCs). The Company’s products are used in devices, such as smartphones, tablets and personal computers (PCs).

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