Analog Devices (NASDAQ: ADI) and Pericom Semiconductor (NASDAQ:PSEM) are both semiconductors – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Dividends

Analog Devices pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. Pericom Semiconductor does not pay a dividend. Analog Devices pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Analog Devices and Pericom Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Analog Devices 0 9 17 0 2.65
Pericom Semiconductor 0 0 0 0 N/A

Analog Devices presently has a consensus target price of $93.83, suggesting a potential upside of 4.73%.

Institutional & Insider Ownership

86.7% of Analog Devices shares are owned by institutional investors. 1.1% of Analog Devices shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Analog Devices and Pericom Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Analog Devices 14.77% 19.06% 8.78%
Pericom Semiconductor 11.19% 6.74% 5.80%

Valuation & Earnings

This table compares Analog Devices and Pericom Semiconductor’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Analog Devices $3.42 billion 9.63 $861.66 million $2.00 44.80
Pericom Semiconductor N/A N/A N/A $0.56 N/A

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

Summary

Analog Devices beats Pericom Semiconductor on 9 of the 10 factors compared between the two stocks.

Analog Devices Company Profile

Analog Devices, Inc. (Analog Devices) designs, manufactures and markets a portfolio of solutions that leverage high-performance analog, mixed-signal and digital signal processing technology, including integrated circuits (ICs), algorithms, software and subsystems. Its products include Analog Products, Converters, Amplifiers/Radio Frequency, Other Analog, Power Management and Reference, and Digital Signal Processing Products. The Company is a supplier of data converter products. The Company is a supplier of high-performance amplifiers. Its analog product line also includes products of high performance radio frequency (RF) ICs. The Company’s DSPs are used for high-speed numeric calculations. The Company offers its products for applications in various end markets, such as industrial, automotive, consumer and communications. The Company operates in the United States, Rest of North/South America, Europe, Japan and China.

Pericom Semiconductor Company Profile

Pericom Semiconductor Corporation (Pericom) designs, develops and markets integrated circuits (ICs) and frequency control products (FCPs). The Company’s IC products include functions that support the connectivity, timing and signal conditioning of high-speed parallel and serial protocols that transfer data among a system’s microprocessor, memory and various peripherals, and between interconnected systems. The Company has four primary IC product categories: connectivity, switching, timing and signal integrity. Pericom’s FCPs are electronic components that provide frequency references, such as crystals and oscillators for computer, communication and consumer electronic products. It enables serial connectivity with solutions for the computing, communications and consumer market segments. Its products are used in various applications, such as servers, storage, enterprise networks, telecommunications and embedded applications.

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