Head-To-Head Contrast: AXT (AXTI) & Semiconductor Manufacturing Int'l (NYSE:SMI)

Semiconductor Manufacturing Int'l (NYSE: SMI) and AXT (NASDAQ:AXTI) are both semiconductors – nec companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

0.7% of Semiconductor Manufacturing Int'l shares are owned by institutional investors. Comparatively, 60.4% of AXT shares are owned by institutional investors. 6.9% of AXT shares are owned by 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.

Volatility and Risk

Semiconductor Manufacturing Int'l has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, AXT has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Semiconductor Manufacturing Int'l 7.54% 4.06% 2.24%
AXT 9.96% 5.67% 5.04%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Semiconductor Manufacturing Int'l and AXT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semiconductor Manufacturing Int'l 7 4 1 0 1.50
AXT 0 1 3 0 2.75

AXT has a consensus price target of $9.94, suggesting a potential upside of 11.03%. Given AXT’s stronger consensus rating and higher possible upside, analysts plainly believe AXT is more favorable than Semiconductor Manufacturing Int'l.

Valuation & Earnings

This table compares Semiconductor Manufacturing Int'l and AXT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semiconductor Manufacturing Int'l $2.91 billion 2.55 $376.63 million $0.25 32.00
AXT $81.35 million 4.28 $5.63 million $0.24 37.29

Semiconductor Manufacturing Int'l has higher revenue and earnings than AXT. Semiconductor Manufacturing Int'l is trading at a lower price-to-earnings ratio than AXT, indicating that it is currently the more affordable of the two stocks.

Summary

AXT beats Semiconductor Manufacturing Int'l on 11 of the 14 factors compared between the two stocks.

Semiconductor Manufacturing Int'l Company Profile

Semiconductor Manufacturing International Corporation is an investment holding company principally engaged in the computer-aided design, manufacture, packaging and trading of integrated circuits (IC), as well as the provision of other semiconductor services. The Company is also involved in the design and manufacture of semiconductor masks. The Company’s main products are various types of wafers. The Company distributes its products in domestic market and to overseas markets, such as the Europe and the United States.

AXT Company Profile

AXT, Inc. (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials. The Company provides alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). The Company uses its Vertical Gradient Freeze (VGF) technique for growing single crystal Indium Phosphide (InP), Gallium Arsenide (GaAs) and Germanium (Ge) ingots used to produce wafers for diverse electronic and optoelectronic device and circuit applications.

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