Contrasting STMicroelectronics (STM) & Nlight (LASR)

STMicroelectronics (NYSE:STM) and Nlight (NASDAQ:LASR) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares STMicroelectronics and Nlight’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STMicroelectronics 11.48% 20.69% 11.53%
Nlight N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for STMicroelectronics and Nlight, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STMicroelectronics 0 3 4 0 2.57
Nlight 1 1 4 1 2.71

STMicroelectronics currently has a consensus target price of $28.00, indicating a potential upside of 68.17%. Nlight has a consensus target price of $37.83, indicating a potential upside of 97.77%. Given Nlight’s stronger consensus rating and higher probable upside, analysts plainly believe Nlight is more favorable than STMicroelectronics.

Dividends

STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Nlight does not pay a dividend. STMicroelectronics pays out 20.4% of its earnings in the form of a dividend.

Insider and Institutional Ownership

4.2% of STMicroelectronics shares are owned by institutional investors. Comparatively, 46.5% of Nlight shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares STMicroelectronics and Nlight’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
STMicroelectronics $8.35 billion 1.79 $802.00 million $0.98 16.99
Nlight $138.58 million 4.80 $1.83 million N/A N/A

STMicroelectronics has higher revenue and earnings than Nlight.

About STMicroelectronics

STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide. It operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The company offers a range of products, including discrete and standard commodity components, application-specific integrated circuits, full-custom and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications, as well as silicon chips and smartcards. It also provides subsystems, and assembly and other services. The company sells its products through its distributors and retailers, as well as through sales representatives. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.

About Nlight

nLIGHT, Inc. designs, develops, and manufactures semiconductor and fiber lasers used in various end applications in the industrial, microfabrication, and aerospace and defense markets. The company also produces optical fiber products. It markets and sells its products to original equipment manufacturer primarily through direct sales force in the United States, China, South Korea, Germany, and Finland, as well as through various independent sales representatives and distributors in North America, Asia, and Europe. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was founded in 2000 and is headquartered in Vancouver, Washington.

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