Silicon Labs (NASDAQ: SLAB) and Kulicke and Soffa Industries (NASDAQ:KLIC) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.
This table compares Silicon Labs and Kulicke and Soffa Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kulicke and Soffa Industries||3.10%||16.70%||12.86%|
Valuation & Earnings
This table compares Silicon Labs and Kulicke and Soffa Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Silicon Labs||$768.87 million||5.78||$47.09 million||$2.35||43.77|
|Kulicke and Soffa Industries||$809.00 million||1.92||$112.01 million||$1.55||14.18|
Kulicke and Soffa Industries has higher revenue and earnings than Silicon Labs. Kulicke and Soffa Industries is trading at a lower price-to-earnings ratio than Silicon Labs, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
89.4% of Silicon Labs shares are held by institutional investors. Comparatively, 84.8% of Kulicke and Soffa Industries shares are held by institutional investors. 2.0% of Silicon Labs shares are held by insiders. Comparatively, 1.4% of Kulicke and Soffa Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and target prices for Silicon Labs and Kulicke and Soffa Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kulicke and Soffa Industries||1||1||2||0||2.25|
Silicon Labs presently has a consensus target price of $110.11, indicating a potential upside of 7.06%. Kulicke and Soffa Industries has a consensus target price of $28.13, indicating a potential upside of 27.96%. Given Kulicke and Soffa Industries’ higher possible upside, analysts clearly believe Kulicke and Soffa Industries is more favorable than Silicon Labs.
Volatility & Risk
Silicon Labs has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Kulicke and Soffa Industries has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Silicon Labs beats Kulicke and Soffa Industries on 9 of the 14 factors compared between the two stocks.
Silicon Labs Company Profile
Silicon Laboratories Inc., a fabless semiconductor company, designs, develops, and markets mixed-signal integrated circuits (ICs) in the United States, China, and internationally. The company offers Internet of things products, such as 8-bit mixed-signal, 32-bit wireless, and ultra-low-power 32-bit microcontrollers; wireless connectivity devices, including multiprotocol wireless Gecko system-on-chip devices; real-time operating systems; sensor products comprising optical, relative humidity/temperature, and hall effect magnetic sensors. It also provides broadcast products, which include single-chip hybrid TV tuners and analog TV demodulators, as well as AM/FM, HD radio, and DAB/DAB+ receivers; and radio ICs. In addition, the company offers infrastructure products, such as timing devices; and multi-channel isolators, isolated drivers, isolated power converters, and mixed-signal devices. Further, it provides access products, including ProSLIC subscriber line interface circuits for VoIP; ISOmodem embedded modems; and Power over Ethernet power source equipment and powered device ICs. The company primarily markets its products to Internet of Things, Internet infrastructure, industrial automation, consumer, and automotive markets through direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.
Kulicke and Soffa Industries Company Profile
Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and expendable tools to assemble semiconductor devices. It operates in two segments, Capital Equipment, and Aftermarket Products and Services (APS). The Capital Equipment segment manufactures and sells a line of ball bonders, wafer level bonders, wedge bonders, advanced packaging, and electronic assembly solutions. The APS segment manufactures and sells various tools for a range of semiconductor packaging applications, which include capillaries, which are expendable tools used in ball bonders; dicing blades that are expendable tools for semiconductor manufacturers to cut silicon wafers into individual semiconductor die or to cut packaged semiconductor units into individual units; and bonding wedges, which are expendable tools used in heavy wire wedge bonders. This segment also provides spare parts, equipment repair, maintenance and servicing, training services, and equipment upgrading services. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore.
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