Comparing SuperCom (SPCB) and Silicon Laboratories (SLAB)

SuperCom (NASDAQ:SPCB) and Silicon Laboratories (NASDAQ:SLAB) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

22.4% of SuperCom shares are held by institutional investors. Comparatively, 91.4% of Silicon Laboratories shares are held by institutional investors. 2.0% of Silicon Laboratories shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
SuperCom -13.75% 4.15% 2.56%
Silicon Laboratories 6.78% 11.90% 7.57%

Volatility and Risk

SuperCom has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SuperCom and Silicon Laboratories, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SuperCom 0 0 1 0 3.00
Silicon Laboratories 0 2 8 0 2.80

SuperCom presently has a consensus target price of $5.00, indicating a potential upside of 194.12%. Silicon Laboratories has a consensus target price of $116.33, indicating a potential upside of 39.39%. Given SuperCom’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SuperCom is more favorable than Silicon Laboratories.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SuperCom $33.26 million 0.76 -$6.66 million ($0.14) -12.14
Silicon Laboratories $768.87 million 4.71 $47.09 million $2.35 35.51

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

Summary

Silicon Laboratories beats SuperCom on 12 of the 14 factors compared between the two stocks.

About SuperCom

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company offers MAGNA, a common platform for ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. Its PureRF suite is a solution based on radio-frequency identification (RFID) tag technology to identify, locate, track, monitor, count, and protect people and objects. The company's PureRF suite comprises PureRF tags, hands-free long-range RFID asset and Vehicle tags, PureRF readers, PureRF activators, and PureRF initializers. It also provides house arrest monitoring systems, PureTag RF bracelets, PureCom RF base stations, GPS offender tracking systems, PureTrack smartphone device, PureBeacon, PureMonitor offender electronic monitoring software, inmate monitoring systems, DoorGuard tracking station, and personnel tags. In addition, the company offers domestic violence victim protection systems; SuperPay, a mobile payment hybrid suite; and PowaPOS, an integrated design incorporating retail peripherals. Further, it provides Safend's Encryption Suite that protects the organization's sensitive data; and designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. The company serves healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, and building and access automation industries. SuperCom Ltd. sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives and resellers. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was founded in 1988 and is based in Herzliya, Israel.

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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