Sigma Designs (NASDAQ: SIGM) and Switch (NYSE:SWCH) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Earnings & Valuation
This table compares Sigma Designs and Switch’s revenue, earnings per share and valuation.
||Earnings Per Share
Switch has higher revenue and earnings than Sigma Designs.
This table compares Sigma Designs and Switch’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional & Insider Ownership
63.6% of Sigma Designs shares are held by institutional investors. 4.5% of Sigma Designs shares are held by 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.
This is a breakdown of recent recommendations and price targets for Sigma Designs and Switch, as reported by MarketBeat.
||Strong Buy Ratings
Sigma Designs currently has a consensus target price of $7.50, indicating a potential upside of 31.58%. Switch has a consensus target price of $22.20, indicating a potential upside of 36.62%. Given Switch’s stronger consensus rating and higher probable upside, analysts clearly believe Switch is more favorable than Sigma Designs.
Switch beats Sigma Designs on 9 of the 11 factors compared between the two stocks.
Sigma Designs Company Profile
Sigma Designs, Inc. is a provider of global integrated semiconductor solutions. The Company offers media platforms for use in the home entertainment and home control markets. The Company sells its products into markets, including smart television, media connectivity, set-top box and Internet of Things (IoT) devices. The Company’s media processor product line consists of a range of functionally similar platforms that are based on integrated chips, embedded software and hardware reference designs. The Company’s media connectivity product line consists of wired home networking controller chipsets that are designed to provide connectivity solutions between various home entertainment products and incoming video streams. The Company’s IoT devices product line consists of its wireless Z-Wave chips and modules. The Company is engaged in the license of its internally developed intellectual property. It also offers legacy products that are sold into prosumer and other industrial applications.
Switch Company Profile
Switch, Inc. is a technology infrastructure company. The Company is developer and operator of the SUPERNAP, data center facilities, and provides colocation, telecommunications, cloud services, and content ecosystems. The Company designs, constructs and operates hyperscale data centers that address the growing challenges facing the data center industry. The Company’s patented technologies include 100% hot aisle containment rows, exterior wall penetrating multi-mode HVAC units, hot and cold containment segregation structure, redundant data center roofing system, multi-system power containers, data center infrastructure management system (DCIM).
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