Head to Head Survey: Photronics (NASDAQ:PLAB) and SiTime (NASDAQ:SITM)

SiTime (NASDAQ:SITM) and Photronics (NASDAQ:PLAB) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares SiTime and Photronics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$326.66 million	43.52	-$42.90 million	$0.94	500.59
Photronics	$849.29 million	1.94	$136.40 million	$2.84	9.82

Photronics has higher revenue and earnings than SiTime. Photronics is trading at a lower price-to-earnings ratio than SiTime, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SiTime and Photronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiTime	3.87%	9.07%	6.15%
Photronics	19.05%	7.45%	6.53%

Volatility and Risk

SiTime has a beta of 2.88, suggesting that its share price is 188% more volatile than the S&P 500. Comparatively, Photronics has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for SiTime and Photronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	2	2	10	2	2.75
Photronics	0	2	3	1	2.83

SiTime presently has a consensus price target of $687.00, indicating a potential upside of 46.00%. Photronics has a consensus price target of $49.33, indicating a potential upside of 76.95%. Given Photronics’ stronger consensus rating and higher probable upside, analysts clearly believe Photronics is more favorable than SiTime.

Institutional and Insider Ownership

84.3% of SiTime shares are held by institutional investors. Comparatively, 88.4% of Photronics shares are held by institutional investors. 1.4% of SiTime shares are held by insiders. Comparatively, 3.3% of Photronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Photronics beats SiTime on 9 of the 15 factors compared between the two stocks.

About SiTime

SiTime Corporation develops silicon-based timing solutions using microelectromechanical systems (MEMS) technology. Its products include MEMS resonators, oscillators and clock generators, which provide timing signals used to synchronize electronic systems. The company’s components serve applications across communications, data centers, automotive, industrial, aerospace and defense, and consumer electronics. SiTime sells its products to customers and partners worldwide. Founded in 2005, SiTime became part of Japan’s MegaChips in 2014 and later became a publicly traded company.

About Photronics

Photronics, Inc. manufactures photomasks, high-precision plates used to transfer circuit patterns onto semiconductor wafers and flat-panel displays. Its products support the production of integrated circuits and display technologies. The company serves semiconductor and display manufacturers around the world, with operations across North America, Europe and Asia. Photronics traces its history to 1969, when it was established as Photronic Labs. Photronics is headquartered in Brookfield, Connecticut.