Sunedison Semiconductor (SEMI) vs. United Microelectronics (NYSE:UMC) Head to Head Analysis

United Microelectronics (NYSE: UMC) and Sunedison Semiconductor (NASDAQ:SEMI) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Dividends

United Microelectronics pays an annual dividend of $0.06 per share and has a dividend yield of 2.4%. Sunedison Semiconductor does not pay a dividend. United Microelectronics pays out 46.2% of its earnings in the form of a dividend.

Profitability

This table compares United Microelectronics and Sunedison Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Microelectronics 6.43% 4.48% 2.51%
Sunedison Semiconductor -13.19% -24.50% -10.80%

Institutional and Insider Ownership

5.7% of United Microelectronics shares are held by institutional investors. Comparatively, 63.0% of Sunedison Semiconductor shares are held by institutional investors. 8.0% of United Microelectronics shares are held by insiders. Comparatively, 1.9% of Sunedison Semiconductor shares are held by insiders. 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 United Microelectronics and Sunedison Semiconductor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Microelectronics $5.01 billion 1.20 $323.00 million $0.13 19.00
Sunedison Semiconductor N/A N/A N/A ($5.29) N/A

United Microelectronics has higher revenue and earnings than Sunedison Semiconductor. Sunedison Semiconductor is trading at a lower price-to-earnings ratio than United Microelectronics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for United Microelectronics and Sunedison Semiconductor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Microelectronics 7 1 1 0 1.33
Sunedison Semiconductor 0 0 0 0 N/A

United Microelectronics presently has a consensus price target of $2.10, suggesting a potential downside of 14.98%.

Summary

United Microelectronics beats Sunedison Semiconductor on 9 of the 11 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments: wafer fabrication and new business. The primary operating activity of the Company’s wafer fabrication segment is the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The new business segment primarily includes researching, developing, manufacturing, and providing solar energy and new generation light-emitting diode (LED). The Company maintains a customer base across various industries, including communication, consumer electronics, computer, memory and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.

About Sunedison Semiconductor

SunEdison Semiconductor Limited is engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry. The Company also develops advanced substrates, such as epitaxial (EPI) wafers and wafers for the silicon-on-insulator (SOI) market, which enable computing and communications applications. Its products include polished wafers, EPI wafers and SOI wafers. The Company sells its products to the semiconductor manufacturers around the world, including integrated device manufacturers, pure-play semiconductor foundries and companies that specialize in wafer customization. It operates facilities in semiconductor manufacturing regions throughout the world, including Taiwan, Malaysia, South Korea, Italy, Japan, and the United States. Its wafers are used as the base substrate for the manufacture of various types of semiconductor devices, including microprocessors, memory, analog, mixed-signal and radio frequency (RF) integrated circuits, discrete and image sensors.

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