Head to Head Survey: Siliconware Precision Industries (SPIL) and Silicon Motion Technology (SIMO)

Silicon Motion Technology (NASDAQ: SIMO) and Siliconware Precision Industries (NASDAQ:SPIL) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Valuation & Earnings

This table compares Silicon Motion Technology and Siliconware Precision Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Silicon Motion Technology $556.15 million 3.30 $110.94 million $2.54 20.47
Siliconware Precision Industries $2.64 billion 1.95 $302.68 million $0.36 22.92

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

Analyst Ratings

This is a breakdown of recent recommendations for Silicon Motion Technology and Siliconware Precision Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Motion Technology 0 3 10 0 2.77
Siliconware Precision Industries 0 0 0 0 N/A

Silicon Motion Technology presently has a consensus target price of $57.67, suggesting a potential upside of 10.92%. Given Silicon Motion Technology’s higher probable upside, equities research analysts plainly believe Silicon Motion Technology is more favorable than Siliconware Precision Industries.

Dividends

Silicon Motion Technology pays an annual dividend of $0.89 per share and has a dividend yield of 1.7%. Siliconware Precision Industries pays an annual dividend of $0.21 per share and has a dividend yield of 2.5%. Silicon Motion Technology pays out 35.0% of its earnings in the form of a dividend. Siliconware Precision Industries pays out 58.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility and Risk

Silicon Motion Technology has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Siliconware Precision Industries has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Institutional & Insider Ownership

82.8% of Silicon Motion Technology shares are held by institutional investors. Comparatively, 2.7% of Siliconware Precision Industries shares are held by institutional investors. 14.3% of Siliconware Precision Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Silicon Motion Technology and Siliconware Precision Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicon Motion Technology 17.18% 19.58% 14.98%
Siliconware Precision Industries 9.79% 12.42% 6.68%

Summary

Silicon Motion Technology beats Siliconware Precision Industries on 10 of the 15 factors compared between the two stocks.

Silicon Motion Technology Company Profile

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).

Siliconware Precision Industries Company Profile

Siliconware Precision Industries Co., Ltd. is a Taiwan-based company mainly engaged in the provision of packaging and testing services of integrated circuits (ICs) and related products. The Company’s businesses include the manufacture, processing, assembly, testing and importing and exporting of ICs, transistors, light emitting diode (LED) digital displays, LED lights, liquid crystal display (LCD) clock cores, phototransistors, synthesis circuits, as well as thin film circuits and thick film circuits. The Company’s packaging businesses focus on IC products, including plastic small size ICs and plastic square planar ICs, among others. Its testing businesses mainly include final testing businesses and system level testing businesses, among others.

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