Intersil (ISIL) & Semtech (SMTC) Critical Analysis

Semtech (NASDAQ: SMTC) and Intersil (NASDAQ:ISIL) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

This table compares Semtech and Intersil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semtech 7.79% 12.13% 7.38%
Intersil 13.67% 7.83% 6.57%

Earnings and Valuation

This table compares Semtech and Intersil’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semtech $544.27 million 4.32 $54.66 million $0.69 51.31
Intersil N/A N/A N/A $0.35 N/A

Semtech has higher revenue and earnings than Intersil. Intersil is trading at a lower price-to-earnings ratio than Semtech, indicating that it is currently the more affordable of the two stocks.

Dividends

Intersil pays an annual dividend of $0.48 per share. Semtech does not pay a dividend. Intersil pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations and price targets for Semtech and Intersil, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semtech 0 2 8 0 2.80
Intersil 0 1 0 0 2.00

Semtech presently has a consensus target price of $41.90, suggesting a potential upside of 18.36%. Intersil has a consensus target price of $22.50, suggesting a potential upside of Infinity. Given Intersil’s higher possible upside, analysts plainly believe Intersil is more favorable than Semtech.

Insider & Institutional Ownership

95.4% of Semtech shares are owned by institutional investors. Comparatively, 93.4% of Intersil shares are owned by institutional investors. 2.1% of Semtech shares are owned by company insiders. Comparatively, 1.6% of Intersil shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Semtech beats Intersil on 9 of the 12 factors compared between the two stocks.

Semtech Company Profile

Semtech Corporation is a supplier of analog and mixed-signal semiconductor products. The Company designs, develops and markets a range of products for commercial applications, which are sold into the enterprise computing, communications, consumer and industrial end-markets. Its product lines include Signal Integrity, Protection, Wireless and Sensing, and Power and High-Reliability. Applications for the industrial market include video broadcast studio equipment, automated meter reading, wireless charging, military and aerospace, medical, security systems, automotive, Internet of Things, industrial and home automation, and video security and surveillance. Enterprise computing end-markets include desktops, notebooks, servers, graphic boards, printers, datacenter related equipment and passive optical networks. Communications end-market applications include wireless base stations, carrier networks, switches and routers, cable modems, signal conditioners and wireless local area network.

Intersil Company Profile

Intersil Corporation is engaged in designing and developing power management and precision analog integrated circuits (IC). The Company provides power management and precision analog technology for applications in the infrastructure, industrial, automotive, military, aerospace, computing, and consumer markets. It supplies a range of power IC solutions for battery management, processor power management and display power management, including power regulators, converters and controllers, as well as integrated power modules. It also provides precision analog components, such as amplifiers and buffers, proximity and light sensors, data converters, optoelectronics, video decoders and interface products. It is also a supplier of radiation-hardened devices to the military and aerospace industries. It operates in approximately two market categories, including industrial and infrastructure, and computing and consumer.

Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply