Reviewing Microsemi Communications (VTSS) and Its Peers

Microsemi Communications (NASDAQ: VTSS) is one of 26 publicly-traded companies in the “Integrated Circuits” industry, but how does it contrast to its peers? We will compare Microsemi Communications to related companies based on the strength of its risk, earnings, profitability, analyst recommendations, dividends, institutional ownership and valuation.

Risk & Volatility

Microsemi Communications has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Microsemi Communications’ peers have a beta of 0.90, indicating that their average stock price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Microsemi Communications and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Microsemi Communications N/A N/A -18.86
Microsemi Communications Competitors $744.39 million $106.85 million 481.28

Microsemi Communications’ peers have higher revenue and earnings than Microsemi Communications. Microsemi Communications is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

56.1% of shares of all “Integrated Circuits” companies are held by institutional investors. 14.3% of shares of all “Integrated Circuits” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Microsemi Communications and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsemi Communications 0 0 0 0 N/A
Microsemi Communications Competitors 77 446 990 60 2.66

As a group, “Integrated Circuits” companies have a potential upside of 7.73%. Given Microsemi Communications’ peers higher possible upside, analysts plainly believe Microsemi Communications has less favorable growth aspects than its peers.

Profitability

This table compares Microsemi Communications and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Microsemi Communications -20.36% -69.40% -23.46%
Microsemi Communications Competitors -1.85% -9.66% -2.87%

Summary

Microsemi Communications peers beat Microsemi Communications on 7 of the 8 factors compared.

About Microsemi Communications

Vitesse Semiconductor Corporation supplies high-performance integrated circuits used by manufacturers of networking systems for Carrier and Enterprise networking applications. The Company designs, develops and markets a diverse networking and connectivity IC solutions. The Company develops and manufactures variety of products that are marketed to Carrier and Enterprise networking, as well as data center infrastructure original equipment manufacturers. The Company’s product lines include Ethernet Switching Product Line that addresses Gigabit Ethernet and 10 Gigabit Ethernet applications in Carrier and Enterprise markets; Connectivity Product Line includes mixed-signal physical layer devices for connection of systems via optical fiber, copper cable, or backplanes and Transport Processing Product Line addresses the needs of Carrier network providers as they undergo a migration to new Ethernet packet-based networks.

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