Head-To-Head Review: Switch (SWCH) & Sigma Designs (SIGM)
Switch (NYSE: SWCH) and Sigma Designs (NASDAQ:SIGM) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
60.4% of Sigma Designs shares are owned by institutional investors. 4.5% of Sigma Designs shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Switch and Sigma Designs, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Switch currently has a consensus price target of $22.20, suggesting a potential upside of 24.23%. Sigma Designs has a consensus price target of $7.50, suggesting a potential upside of 22.95%. Given Switch’s stronger consensus rating and higher possible upside, equities analysts clearly believe Switch is more favorable than Sigma Designs.
Valuation & Earnings
This table compares Switch and Sigma Designs’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Switch||$318.35 million||14.17||$31.36 million||N/A||N/A|
|Sigma Designs||$220.54 million||1.07||-$18.31 million||($0.94)||-6.49|
Switch has higher revenue and earnings than Sigma Designs.
This table compares Switch and Sigma Designs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Switch beats Sigma Designs on 9 of the 11 factors compared between the two stocks.
Switch Company Profile
Switch, Inc. is a technology infrastructure company. The Company is developer and operator of the SUPERNAP, data center facilities, and provides colocation, telecommunications, cloud services, and content ecosystems. The Company designs, constructs and operates hyperscale data centers that address the growing challenges facing the data center industry. The Company’s patented technologies include 100% hot aisle containment rows, exterior wall penetrating multi-mode HVAC units, hot and cold containment segregation structure, redundant data center roofing system, multi-system power containers, data center infrastructure management system (DCIM).
Sigma Designs Company Profile
Sigma Designs, Inc. is a provider of global integrated semiconductor solutions. The Company offers media platforms for use in the home entertainment and home control markets. The Company sells its products into markets, including smart television, media connectivity, set-top box and Internet of Things (IoT) devices. The Company’s media processor product line consists of a range of functionally similar platforms that are based on integrated chips, embedded software and hardware reference designs. The Company’s media connectivity product line consists of wired home networking controller chipsets that are designed to provide connectivity solutions between various home entertainment products and incoming video streams. The Company’s IoT devices product line consists of its wireless Z-Wave chips and modules. The Company is engaged in the license of its internally developed intellectual property. It also offers legacy products that are sold into prosumer and other industrial applications.
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