United Microelectronics (NYSE: UMC) and Inphi (NYSE:IPHI) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Insider & Institutional Ownership
5.8% of United Microelectronics shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by company insiders. Comparatively, 3.6% of Inphi shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares United Microelectronics and Inphi’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility and Risk
United Microelectronics has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Inphi has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for United Microelectronics and Inphi, as provided by MarketBeat.com.
||Strong Buy Ratings
United Microelectronics presently has a consensus price target of $2.10, indicating a potential downside of 18.60%. Inphi has a consensus price target of $39.93, indicating a potential upside of 31.09%. Given Inphi’s stronger consensus rating and higher probable upside, analysts clearly believe Inphi is more favorable than United Microelectronics.
United Microelectronics pays an annual dividend of $0.06 per share and has a dividend yield of 2.3%. Inphi does not pay a dividend. United Microelectronics pays out 46.2% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares United Microelectronics and Inphi’s gross revenue, earnings per share and valuation.
||Earnings Per Share
United Microelectronics has higher revenue and earnings than Inphi. Inphi is trading at a lower price-to-earnings ratio than United Microelectronics, indicating that it is currently the more affordable of the two stocks.
United Microelectronics beats Inphi on 9 of the 17 factors compared between the two stocks.
About United Microelectronics
United Microelectronics Corporation is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments: wafer fabrication and new business. The primary operating activity of the Company’s wafer fabrication segment is the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The new business segment primarily includes researching, developing, manufacturing, and providing solar energy and new generation light-emitting diode (LED). The Company maintains a customer base across various industries, including communication, consumer electronics, computer, memory and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.
Inphi Corporation is a provider of analog and mixed signal semiconductor solutions for the communications and datacenter markets. The Company’s solutions provide an interface between analog signals and digital information in systems, such as telecommunications transport systems, enterprise networking equipment and datacenters. It is engaged in the design, development and sale of analog connectivity components that operate to maintain, amplify and manage signal integrity at high speeds in a range of applications. Its semiconductor solutions are designed to address bandwidth bottlenecks in networks and enable the rollout of communications and datacenter infrastructures. The Company provides 25 gigabit (G) to 600G high-speed analog semiconductor solutions for the communications market. As of December 31, 2016, the Company’s product portfolio included products that had commercially shipped, products for which the Company had shipped engineering samples and products under development.
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