Semiconductor Manufacturing Int’l (SIUIF) versus NVIDIA (NVDA) Financial Analysis

Semiconductor Manufacturing Int’l (OTCMKTS:SIUIF) and NVIDIA (NASDAQ:NVDA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Semiconductor Manufacturing Int’l and NVIDIA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semiconductor Manufacturing Int’l N/A N/A N/A
NVIDIA 35.35% 41.78% 28.78%

Analyst Ratings

This is a summary of recent ratings for Semiconductor Manufacturing Int’l and NVIDIA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semiconductor Manufacturing Int’l 0 0 0 0 N/A
NVIDIA 2 10 24 0 2.61

NVIDIA has a consensus price target of $206.19, indicating a potential upside of 21.42%. Given NVIDIA’s higher probable upside, analysts clearly believe NVIDIA is more favorable than Semiconductor Manufacturing Int’l.

Insider & Institutional Ownership

68.7% of NVIDIA shares are held by institutional investors. 4.7% of NVIDIA shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Semiconductor Manufacturing Int’l and NVIDIA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semiconductor Manufacturing Int’l N/A N/A N/A N/A N/A
NVIDIA $11.72 billion 8.78 $4.14 billion $6.07 27.98

NVIDIA has higher revenue and earnings than Semiconductor Manufacturing Int’l.

Dividends

NVIDIA pays an annual dividend of $0.64 per share and has a dividend yield of 0.4%. Semiconductor Manufacturing Int’l does not pay a dividend. NVIDIA pays out 10.5% of its earnings in the form of a dividend. NVIDIA has raised its dividend for 6 consecutive years.

Summary

NVIDIA beats Semiconductor Manufacturing Int’l on 10 of the 11 factors compared between the two stocks.

About Semiconductor Manufacturing Int’l

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. The company offers various types of semiconductors, including logic, mixed-signal and radio frequency, power IC, microprocessor, memory related, optoelectronics, other sensors, discrete, and others. It also provides integrated solutions, such as design support services; libraries and intellectual property services; mask-making services; and wafer probing, bumping, assembling, and testing services. In addition, the company designs and manufactures semiconductor masks and solar cells related semiconductor products; and offers marketing related services. It operates in the United States, Europe, and the Asia Pacific. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

About NVIDIA

NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units. The Tegra Processor segment provides processors that are primarily designed to enable branded platforms – DRIVE and SHIELD; DRIVE AGX automotive computers and software stacks, which offer self-driving capabilities; Clara AGX for intelligent medical instruments; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson AGX, an AI computing platform for robotics and other embedded use. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. The company was founded in 1993 and is headquartered in Santa Clara, California.

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