Financial Review: Everspin Technologies (MRAM) versus Silicon Laboratories (SLAB)

Everspin Technologies (NASDAQ: MRAM) and Silicon Laboratories (NASDAQ:SLAB) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

35.0% of Everspin Technologies shares are held by institutional investors. Comparatively, 89.9% of Silicon Laboratories shares are held by institutional investors. 24.0% of Everspin Technologies shares are held by company insiders. Comparatively, 2.0% of Silicon Laboratories shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Everspin Technologies and Silicon Laboratories, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everspin Technologies 0 0 3 0 3.00
Silicon Laboratories 0 2 8 0 2.80

Everspin Technologies presently has a consensus target price of $14.00, suggesting a potential upside of 52.67%. Silicon Laboratories has a consensus target price of $113.40, suggesting a potential upside of 9.30%. Given Everspin Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Everspin Technologies is more favorable than Silicon Laboratories.

Earnings & Valuation

This table compares Everspin Technologies and Silicon Laboratories’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everspin Technologies $35.94 million 4.25 -$21.10 million ($1.69) -5.43
Silicon Laboratories $768.87 million 5.83 $47.09 million $2.35 44.15

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

Risk & Volatility

Everspin Technologies has a beta of 3.33, indicating that its share price is 233% more volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Profitability

This table compares Everspin Technologies and Silicon Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everspin Technologies -38.03% -80.66% -40.20%
Silicon Laboratories 7.30% 11.67% 7.39%

Summary

Silicon Laboratories beats Everspin Technologies on 10 of the 14 factors compared between the two stocks.

About Everspin Technologies

Everspin Technologies, Inc. manufactures and sells magnetoresistive random access memory (MRAM) products to customers in the United States and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, embedded MRAM, magnetic sensor, and aerospace and satellite electronic systems. The company provides its products for applications, including industrial, automotive, transportation, and enterprise storage markets. It serves customers through a direct sales channel and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.

About Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, designs, develops, and markets mixed-signal integrated circuits (ICs) in the United States, China, and internationally. The company offers Internet of things products, such as 8-bit mixed-signal, 32-bit wireless, and ultra-low-power 32-bit microcontrollers; wireless connectivity devices, including multiprotocol wireless Gecko system-on-chip devices; real-time operating systems; sensor products comprising optical, relative humidity/temperature, and hall effect magnetic sensors. It also provides broadcast products, which include single-chip hybrid TV tuners and analog TV demodulators, as well as AM/FM, HD radio, and DAB/DAB+ receivers; and radio ICs. In addition, the company offers infrastructure products, such as timing devices; and multi-channel isolators, isolated drivers, isolated power converters, and mixed-signal devices. Further, it provides access products, including ProSLIC subscriber line interface circuits for VoIP; ISOmodem embedded modems; and Power over Ethernet power source equipment and powered device ICs. The company primarily markets its products to Internet of Things, Internet infrastructure, industrial automation, consumer, and automotive markets through direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

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