SemiLEDS Corporation (NASDAQ: LEDS) and Park Electrochemical Corporation (NYSE:PKE) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

SemiLEDS Corporation has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500. Comparatively, Park Electrochemical Corporation has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Institutional & Insider Ownership

2.1% of SemiLEDS Corporation shares are owned by institutional investors. Comparatively, 81.7% of Park Electrochemical Corporation shares are owned by institutional investors. 40.1% of SemiLEDS Corporation shares are owned by insiders. Comparatively, 8.0% of Park Electrochemical Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares SemiLEDS Corporation and Park Electrochemical Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SemiLEDS Corporation -182.84% -59.70% -30.13%
Park Electrochemical Corporation 6.99% 4.92% 2.89%

Dividends

Park Electrochemical Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. SemiLEDS Corporation does not pay a dividend. Park Electrochemical Corporation pays out 105.3% 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 Recommendations

This is a breakdown of recent recommendations and price targets for SemiLEDS Corporation and Park Electrochemical Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SemiLEDS Corporation 0 0 0 0 N/A
Park Electrochemical Corporation 0 0 1 0 3.00

Park Electrochemical Corporation has a consensus target price of $22.00, indicating a potential upside of 22.22%. Given Park Electrochemical Corporation’s higher probable upside, analysts clearly believe Park Electrochemical Corporation is more favorable than SemiLEDS Corporation.

Earnings and Valuation

This table compares SemiLEDS Corporation and Park Electrochemical Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SemiLEDS Corporation $8.53 million 0.71 -$4.18 million ($5.04) -0.34
Park Electrochemical Corporation $110.54 million 3.30 $11.91 million $0.38 47.37

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

Summary

Park Electrochemical Corporation beats SemiLEDS Corporation on 11 of the 14 factors compared between the two stocks.

About SemiLEDS Corporation

SemiLEDs Corporation develops, manufactures and sells light emitting diode (LED) chips and LED components. The Company’s products are used primarily for general lighting applications, including street lights and commercial, industrial and residential lighting. Its LED chips may also be used in specialty industrial applications, such as ultraviolet (UV), curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. The Company produces a range of blue, white, green and UV LED chips, including its Enhanced Vertical (EV) LED product series, ranging from chip sizes of approximately 380 microns (um) by 380um to 1,520um by 1,520um. It designs, assembles and sells lighting fixtures and systems for general lighting applications, including commercial, residential and industrial lighting. Its lighting products consist primarily of LED luminaries and LED retrofits.

About Park Electrochemical Corporation

Park Electrochemical Corp. is a global advanced materials company. The Company develops, manufactures, markets and sells digital and radio frequency (RF)/microwave printed circuit materials products principally for the telecommunications and Internet infrastructure and high-end computing markets and advanced composite materials, parts and assemblies and low-volume tooling products for the aerospace markets. The Company operates through integrated business units in Asia, Europe and North America. The Company’s manufacturing facilities are located in Singapore, France, Kansas, Arizona and California. The Company also maintains research and development facilities in Arizona, Kansas and Singapore. The Company’s foreign operations are conducted principally by the Company’s subsidiaries in Singapore and France.

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