Contrasting Semiconductor Manufacturing International (SMI) and Silicon Motion (SIMO)

Semiconductor Manufacturing International (NYSE: SMI) and Silicon Motion (NASDAQ:SIMO) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Insider & Institutional Ownership

0.6% of Semiconductor Manufacturing International shares are held by institutional investors. Comparatively, 86.0% of Silicon Motion shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Semiconductor Manufacturing International has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, Silicon Motion has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Semiconductor Manufacturing International and Silicon Motion’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semiconductor Manufacturing International $3.10 billion 1.95 $179.67 million $0.20 32.55
Silicon Motion $523.40 million 3.40 $74.95 million $2.09 23.56

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

Dividends

Silicon Motion pays an annual dividend of $1.09 per share and has a dividend yield of 2.2%. Semiconductor Manufacturing International does not pay a dividend. Silicon Motion pays out 52.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for Semiconductor Manufacturing International and Silicon Motion, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semiconductor Manufacturing International 7 4 1 0 1.50
Silicon Motion 1 2 12 0 2.73

Silicon Motion has a consensus target price of $56.98, indicating a potential upside of 15.69%. Given Silicon Motion’s stronger consensus rating and higher possible upside, analysts plainly believe Silicon Motion is more favorable than Semiconductor Manufacturing International.

Profitability

This table compares Semiconductor Manufacturing International and Silicon Motion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semiconductor Manufacturing International 4.44% 2.19% 1.22%
Silicon Motion 14.17% 14.82% 11.31%

Summary

Silicon Motion beats Semiconductor Manufacturing International on 11 of the 15 factors compared between the two stocks.

Semiconductor Manufacturing International Company Profile

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits and other semiconductor services. It also designs and manufactures semiconductor masks; and manufactures and trades in solar cell related semiconductor products. In addition, the company is involved in the bumping and circuit probe testing, as well as marketing related activities. It operates in the United States, Europe, and the Asia Pacific. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

Silicon Motion Company Profile

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets semiconductor solutions for the mobile storage and mobile communications markets worldwide. It offers embedded storage and expandable storage products, including NAND flash controllers, such as embedded MultiMediaCard (eMMC), client solid-state drive (SSD), flash memory card, and Universal Serial Bus flash drive controllers. The company also provides specialty storage solutions, such as customized enterprise-grade Peripheral Component Interconnect Express (PCIe) SSDs; and industrial-grade and commercial-grade single-chip SSDs. In addition, it offers specialty radio frequency integrated circuits (RF ICs), such as mobile TV system-on-chips and handset RF ICs. The company's products are used in smartphones, tablets, digital cameras, camcorders, and desktop and notebook PCs, as well as in industrial, enterprise, commercial, and other applications. It offers its products under the SMI, Shannon Systems, Ferri SSD, Ferri-eMMC, and FCI brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to original equipment manufacturers and module makers. Silicon Motion Technology Corporation was founded in 1995 and is based in Kowloon, Hong Kong.

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