Critical Comparison: Atmel (ATML) & Its Rivals

Atmel (NASDAQ: ATML) is one of 101 public companies in the “Semiconductors” industry, but how does it weigh in compared to its peers? We will compare Atmel to similar businesses based on the strength of its risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Dividends

Atmel pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Atmel pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 55.1% of their earnings in the form of a dividend. Atmel lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

66.2% of shares of all “Semiconductors” companies are held by institutional investors. 6.2% of shares of all “Semiconductors” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Atmel and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Atmel N/A N/A 135.67
Atmel Competitors $4.31 billion $520.00 million 42.92

Atmel’s peers have higher revenue and earnings than Atmel. Atmel is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Atmel and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atmel 0 0 0 0 N/A
Atmel Competitors 933 4779 8740 362 2.58

As a group, “Semiconductors” companies have a potential upside of 13.54%. Given Atmel’s peers higher probable upside, analysts clearly believe Atmel has less favorable growth aspects than its peers.

Risk & Volatility

Atmel has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Atmel’s peers have a beta of 1.02, suggesting that their average stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Atmel and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atmel 1.81% 2.18% 1.48%
Atmel Competitors -45.72% 1.37% 1.34%

Summary

Atmel peers beat Atmel on 6 of the 10 factors compared.

About Atmel

Atmel Corporation supplies microcontrollers. The Company operates through four segments: Microcontroller, Nonvolatile Memory, Automotive and Multi-Market and Other. The Microcontroller segment includes its microcontroller and microprocessor families; AVR 8-bit and 32-bit products; Atmel SMART ARM-based products; designated commercial wireless products, including low power radio and System-on-a-chip products; optimized products for smart energy, touch button, and mobile sensor hub and Light Emitting Diode (LED) lighting applications, and maXTouch capacitive touch product families. The Nonvolatile Memory segment includes electrically erasable programmable read-only, erasable programmable read-only memory devices and secure cryptographic products. The Automotive segment includes devices for automotive electronics, including products using radio frequency technology. The Multi-Market and Other segment includes application specific and standard products for aerospace applications.

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