Financial Comparison: Semtech (NASDAQ:SMTC) and NXP Semiconductors (NASDAQ:NXPI)

Share on StockTwits

Semtech (NASDAQ:SMTC) and NXP Semiconductors (NASDAQ:NXPI) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares Semtech and NXP Semiconductors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semtech 7.34% 12.91% 8.37%
NXP Semiconductors 23.10% 22.22% 10.69%

Volatility and Risk

Semtech has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Dividends

NXP Semiconductors pays an annual dividend of $1.50 per share and has a dividend yield of 1.4%. Semtech does not pay a dividend. NXP Semiconductors pays out 25.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Semtech and NXP Semiconductors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semtech 0 2 8 0 2.80
NXP Semiconductors 0 6 13 1 2.75

Semtech currently has a consensus price target of $53.10, indicating a potential upside of 11.88%. NXP Semiconductors has a consensus price target of $104.74, indicating a potential downside of 3.34%. Given Semtech’s stronger consensus rating and higher possible upside, equities analysts plainly believe Semtech is more favorable than NXP Semiconductors.

Insider and Institutional Ownership

96.3% of Semtech shares are held by institutional investors. Comparatively, 74.8% of NXP Semiconductors shares are held by institutional investors. 2.0% of Semtech 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 and Valuation

This table compares Semtech and NXP Semiconductors’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semtech $627.20 million 5.03 $63.06 million $1.33 35.68
NXP Semiconductors $9.41 billion 3.79 $2.21 billion $5.94 18.24

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

Summary

NXP Semiconductors beats Semtech on 9 of the 17 factors compared between the two stocks.

About Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company provides signal integrity products, including a portfolio of optical data communications and video transport products used in various enterprise computing, industrial, and communications applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. It also offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and wireless and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products used in industrial and consumer applications. In addition, the company provides power products consisting of switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging that control, alter, regulate, and condition the power within electronic systems. It serves original equipment manufacturers and their suppliers in the enterprise computing, communications, and consumer and industrial end-markets. The company sells its products directly, as well as through independent sales representative firms and independent distributors in the United States, Europe, and Asia. Semtech Corporation was founded in 1960 and is headquartered in Camarillo, California.

About NXP Semiconductors

NXP Semiconductors N.V., a semiconductor company, provides high performance mixed signal solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide. The company offers products for audio and visual head-end unit applications, such as single-chip radio solutions, multi-standard radios, audio amplifiers and power analog products, and i.MX applications processors; in-vehicle networking products; two-way secure entry products; various sensors and microcontrollers; power management solutions; battery cell controllers; and solutions for radar, vision, vehicle-to-vehicle, and vehicle-to-infrastructure systems. It also provides secure identification solutions, such as passive RF connectivity devices; microcontroller devices; and secure real-time operating system software products to facilitate the encryption-decryption of data, and the interaction with the reader infrastructure systems. In addition, the company delivers semiconductor-based technologies for connected devices comprising microcontrollers, secure mobile transaction solutions, and various connectivity solutions; and offers digital networking processors, secure interface and system management products, high-performance RF power-amplifiers, and smart antennae solutions. Its product solutions are used in a range of application areas, including automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer, computing, and software solutions for mobile phones. The company markets its products to various original equipment manufacturers, original design manufacturers, contract manufacturers, and distributors. The company was formerly known as KASLION Acquisition B.V and changed its name to NXP Semiconductors N.V. in May 2010. NXP Semiconductors N.V. was founded in 2006 and is headquartered in Eindhoven, the Netherlands.

Receive News & Ratings for Semtech Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Semtech and related companies with MarketBeat.com's FREE daily email newsletter.