Intersil (NASDAQ:ISIL) vs. Siliconware Precision Industries (SPIL) Critical Analysis

Siliconware Precision Industries (NASDAQ: SPIL) and Intersil (NASDAQ:ISIL) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

2.7% of Siliconware Precision Industries shares are owned by institutional investors. Comparatively, 93.4% of Intersil shares are owned by institutional investors. 14.3% of Siliconware Precision Industries shares are owned by company insiders. Comparatively, 1.6% of Intersil shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Siliconware Precision Industries and Intersil, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Siliconware Precision Industries 0 0 0 0 N/A
Intersil 0 1 0 0 2.00

Intersil has a consensus price target of $22.50, indicating a potential upside of 0.04%. Given Intersil’s higher probable upside, analysts clearly believe Intersil is more favorable than Siliconware Precision Industries.

Dividends

Siliconware Precision Industries pays an annual dividend of $0.21 per share and has a dividend yield of 2.5%. Intersil pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Siliconware Precision Industries pays out 58.3% of its earnings in the form of a dividend. Intersil pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Siliconware Precision Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Siliconware Precision Industries and Intersil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Siliconware Precision Industries 9.79% 12.42% 6.68%
Intersil 13.67% 7.83% 6.57%

Valuation and Earnings

This table compares Siliconware Precision Industries and Intersil’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Siliconware Precision Industries $2.64 billion 1.95 $302.68 million $0.36 22.97
Intersil N/A N/A N/A $0.35 64.26

Siliconware Precision Industries has higher revenue and earnings than Intersil. Siliconware Precision Industries is trading at a lower price-to-earnings ratio than Intersil, indicating that it is currently the more affordable of the two stocks.

Summary

Siliconware Precision Industries beats Intersil on 7 of the 10 factors compared between the two stocks.

Siliconware Precision Industries Company Profile

Siliconware Precision Industries Co., Ltd. is a Taiwan-based company mainly engaged in the provision of packaging and testing services of integrated circuits (ICs) and related products. The Company’s businesses include the manufacture, processing, assembly, testing and importing and exporting of ICs, transistors, light emitting diode (LED) digital displays, LED lights, liquid crystal display (LCD) clock cores, phototransistors, synthesis circuits, as well as thin film circuits and thick film circuits. The Company’s packaging businesses focus on IC products, including plastic small size ICs and plastic square planar ICs, among others. Its testing businesses mainly include final testing businesses and system level testing businesses, among others.

Intersil Company Profile

Intersil Corporation is engaged in designing and developing power management and precision analog integrated circuits (IC). The Company provides power management and precision analog technology for applications in the infrastructure, industrial, automotive, military, aerospace, computing, and consumer markets. It supplies a range of power IC solutions for battery management, processor power management and display power management, including power regulators, converters and controllers, as well as integrated power modules. It also provides precision analog components, such as amplifiers and buffers, proximity and light sensors, data converters, optoelectronics, video decoders and interface products. It is also a supplier of radiation-hardened devices to the military and aerospace industries. It operates in approximately two market categories, including industrial and infrastructure, and computing and consumer.

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