Contrasting Dialog Semiconductor (DLGNF) and Cavium (CAVM)

Dialog Semiconductor (OTCMKTS:DLGNF) and Cavium (NASDAQ:CAVM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings and Valuation

This table compares Dialog Semiconductor and Cavium’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dialog Semiconductor $1.35 billion 1.52 $173.91 million N/A N/A
Cavium N/A N/A N/A N/A N/A

Dialog Semiconductor has higher revenue and earnings than Cavium.

Insider & Institutional Ownership

85.8% of Cavium shares are held by institutional investors. 4.7% of Cavium shares are held by 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 Dialog Semiconductor and Cavium’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dialog Semiconductor 11.37% 18.13% 15.79%
Cavium N/A N/A N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Dialog Semiconductor and Cavium, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dialog Semiconductor 1 3 1 0 2.00
Cavium 0 2 0 0 2.00

Cavium has a consensus price target of $80.50, suggesting a potential upside of ∞. Given Cavium’s higher possible upside, analysts plainly believe Cavium is more favorable than Dialog Semiconductor.

Summary

Dialog Semiconductor beats Cavium on 5 of the 8 factors compared between the two stocks.

About Dialog Semiconductor

Dialog Semiconductor Plc develops and distributes highly integrated, mixed signal integrated circuits (ICs) for personal, portable, hand-held devices, low energy short-range wireless, LED solid-state lighting, and automotive applications worldwide. It operates through four segments: Mobile Systems, Automotive & Industrial, Connectivity, and Power Conversion. The company offers power management integrated circuits (PMICs), sub-PMICs, charger ICs, automotive grade PMICs, and audio codecs; Bluetooth low energy ICs, voice over DECT, digital audio and audio codec ICs, and short-range wireless VoIP; AC/DC rapid charge adapters, converters, power adapters, embedded networking converters, and SSL LED and backlight drivers; and motor control ICS and ASIC controllers. It offers its products under the PrimAccurate, Rapid Charge, SmartBond, SmartDefender, SmartMirror, SmartPulse, SmarteXite, SmartXtend, and Ultrabook brands. The company has a partnership with UNISOC to develop the SC2703, an optimized high-performance power management integrated circuit. Dialog Semiconductor Plc was founded in 1986 and is headquartered in Reading, the United Kingdom.

About Cavium

Cavium, Inc. designs, develops, and markets semiconductor processors for intelligent and secure networks in the United States and internationally. The company offers integrated semiconductor processors that enable intelligent processing for wired and wireless infrastructure and cloud for networking, communications, storage, and security applications. Its products consist of multi-core processors for embedded and data center applications, network connectivity for server and switches, storage connectivity, and security processors for offload and appliance, as well as a suite of embedded security protocols that enable unified threat management, secure connectivity, network perimeter protection, and deep packet inspection. The company sells software subscriptions of embedded Linux operating system, related development tools, application software stacks, and support and professional services. It offers its products under the OCTEON, OCTEON Fusion-M, OCTEON XL, OCTEON TX, LiquidIO, LiquidSecurity, NITROX, ThunderX, ThunderX2, Xpliant, and XPA, as well as QLogic and FastLinQ names. Cavium, Inc. primarily sells its products to original equipment manufacturers and mega data centers directly or through their contract manufacturers, as well as through channels and original design manufacturers. The company was founded in 2000 and is headquartered in San Jose, California.

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