Analyzing Super Micro Computer (NASDAQ:SMCI) and Samsung Electronics (OTCMKTS:SSNLF)

Samsung Electronics (OTCMKTS:SSNLF) and Super Micro Computer (NASDAQ:SMCI) are both large-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

0.0% of Samsung Electronics shares are held by institutional investors. Comparatively, 84.1% of Super Micro Computer shares are held by institutional investors. 16.1% of Super Micro Computer shares 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.

Profitability

This table compares Samsung Electronics and Super Micro Computer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Samsung Electronics	9.12%	N/A	N/A
Super Micro Computer	5.71%	27.83%	9.11%

Earnings & Valuation

This table compares Samsung Electronics and Super Micro Computer”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Samsung Electronics	$197.69 billion	0.09	$18.45 billion	$2.68	52.24
Super Micro Computer	$39.06 billion	0.70	$2.23 billion	$3.20	12.95

Samsung Electronics has higher revenue and earnings than Super Micro Computer. Super Micro Computer is trading at a lower price-to-earnings ratio than Samsung Electronics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Samsung Electronics and Super Micro Computer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Samsung Electronics	0	2	0	1	2.67
Super Micro Computer	2	11	4	1	2.22

Super Micro Computer has a consensus target price of $42.13, suggesting a potential upside of 1.67%. Given Super Micro Computer’s higher possible upside, analysts clearly believe Super Micro Computer is more favorable than Samsung Electronics.

Volatility and Risk

Samsung Electronics has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Super Micro Computer has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.

Summary

Super Micro Computer beats Samsung Electronics on 9 of the 14 factors compared between the two stocks.

About Samsung Electronics

Samsung Electronics Co., Ltd. engages in the consumer electronics, information technology and mobile communications, and device solutions businesses worldwide. The company offers smartphones, tablets, watches, and accessories; TVs, projectors, and sound devices; home appliances, including refrigerators, washing machines and dryers, vacuum cleaners, cooking appliances, dishwashers, air conditioners, and air purifiers; monitors and memory storage products; displays, and smart and LED signages; and other accessories. It also engages in venture capital investments, cloud services, network devices installation, semiconductor equipment maintenance services, digital advertising platforms, marketing, consulting, connected services, logistics, financing, and software design activities; toll processing of display panels and semiconductors; development and sale of network solutions; manufactures semiconductors and food; provision of repair services for electronic devices; and development and supply of semiconductor process defect and quality control software, as well as digital televisions, foundry, system large scale integration, connected car systems, audio and visual products, enterprise automation solutions, and connected services. Samsung Electronics Co., Ltd. was incorporated in 1969 and is based in Suwon, South Korea.

About Super Micro Computer

Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 and is headquartered in San Jose, California.