Head to Head Analysis: Silicon Motion Technology Corporation (SIMO) & Siliconware Precision Industries (SPIL)
Silicon Motion Technology Corporation (NASDAQ: SIMO) and Siliconware Precision Industries (NASDAQ:SPIL) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
This is a breakdown of recent ratings for Silicon Motion Technology Corporation and Siliconware Precision Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silicon Motion Technology Corporation||0||3||10||0||2.77|
|Siliconware Precision Industries||0||0||0||0||N/A|
Silicon Motion Technology Corporation currently has a consensus price target of $57.67, suggesting a potential upside of 17.52%. Given Silicon Motion Technology Corporation’s higher possible upside, equities research analysts plainly believe Silicon Motion Technology Corporation is more favorable than Siliconware Precision Industries.
Earnings & Valuation
This table compares Silicon Motion Technology Corporation and Siliconware Precision Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Silicon Motion Technology Corporation||$556.15 million||3.12||$110.94 million||$2.54||19.32|
|Siliconware Precision Industries||$2.64 billion||1.88||$302.68 million||$0.36||22.14|
Siliconware Precision Industries has higher revenue and earnings than Silicon Motion Technology Corporation. Silicon Motion Technology Corporation is trading at a lower price-to-earnings ratio than Siliconware Precision Industries, indicating that it is currently the more affordable of the two stocks.
This table compares Silicon Motion Technology Corporation and Siliconware Precision Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silicon Motion Technology Corporation||17.18%||19.58%||14.98%|
|Siliconware Precision Industries||9.79%||12.42%||6.68%|
Risk and Volatility
Silicon Motion Technology Corporation has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Siliconware Precision Industries has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.
Institutional and Insider Ownership
84.5% of Silicon Motion Technology Corporation shares are held by institutional investors. Comparatively, 2.8% of Siliconware Precision Industries shares are held by institutional investors. 14.3% of Siliconware Precision Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Silicon Motion Technology Corporation pays an annual dividend of $0.89 per share and has a dividend yield of 1.8%. Siliconware Precision Industries pays an annual dividend of $0.21 per share and has a dividend yield of 2.6%. Silicon Motion Technology Corporation pays out 35.0% of its earnings in the form of a dividend. Siliconware Precision Industries pays out 58.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Silicon Motion Technology Corporation beats Siliconware Precision Industries on 10 of the 15 factors compared between the two stocks.
About Silicon Motion Technology Corporation
Silicon Motion Technology Corporation is a fabless semiconductor company. The Company designs, develops and markets low-power semiconductor solutions to original equipment manufacturers (OEMs) and other customers in the mobile storage and mobile communications markets. It is engaged in developing negative-AND (NAND) flash controller integrated circuits (ICs) for solid-state storage devices and specialty radio frequency (RF) ICs for mobile devices. In the mobile storage market, the Company’s products are controllers used in embedded storage products, such as Solid State Drives (SSDs), and Embedded Multimedia Cards (eMMCs), as well as expandable storage products, such as flash memory cards and universal serial bus (USB) flash drives. For the mobile communications market, the Company’s products are handset transceivers and mobile television (TV) System on Chips (SoCs). The Company’s products are used in devices, such as smartphones, tablets and personal computers (PCs).
About Siliconware Precision Industries
Siliconware Precision Industries Co., Ltd. is a Taiwan-based company mainly engaged in the provision of packaging and testing services of integrated circuits (ICs) and related products. The Company’s businesses include the manufacture, processing, assembly, testing and importing and exporting of ICs, transistors, light emitting diode (LED) digital displays, LED lights, liquid crystal display (LCD) clock cores, phototransistors, synthesis circuits, as well as thin film circuits and thick film circuits. The Company’s packaging businesses focus on IC products, including plastic small size ICs and plastic square planar ICs, among others. Its testing businesses mainly include final testing businesses and system level testing businesses, among others.
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