Critical Analysis: Intel Corporation (INTC) and The Competition
Intel Corporation (NASDAQ: INTC) is one of 105 publicly-traded companies in the “Semiconductors” industry, but how does it weigh in compared to its competitors? We will compare Intel Corporation to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.
Valuation & Earnings
This table compares Intel Corporation and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Intel Corporation||$61.71 billion||$24.70 billion||14.18|
|Intel Corporation Competitors||$4.52 billion||$1.30 billion||85.46|
Intel Corporation has higher revenue and earnings than its competitors. Intel Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a summary of current recommendations for Intel Corporation and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Intel Corporation Competitors||1144||5250||8788||407||2.54|
Intel Corporation presently has a consensus target price of $40.69, suggesting a potential upside of 9.96%. As a group, “Semiconductors” companies have a potential upside of 12.51%. Given Intel Corporation’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Intel Corporation has less favorable growth aspects than its competitors.
This table compares Intel Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Intel Corporation Competitors||-47.46%||-0.19%||-0.20%|
Insider & Institutional Ownership
67.0% of Intel Corporation shares are owned by institutional investors. Comparatively, 68.2% of shares of all “Semiconductors” companies are owned by institutional investors. 0.1% of Intel Corporation shares are owned by insiders. Comparatively, 6.1% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Intel Corporation has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Intel Corporation’s competitors have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.
Intel Corporation pays an annual dividend of $1.09 per share and has a dividend yield of 2.9%. Intel Corporation pays out 41.8% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.5% and pay out 58.5% of their earnings in the form of a dividend. Intel Corporation has raised its dividend for 2 consecutive years. Intel Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Intel Corporation beats its competitors on 8 of the 15 factors compared.
About Intel Corporation
Intel Corporation is engaged in designing and manufacturing products and technologies, such as the cloud. The Company’s segments are Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Intel Security Group (ISecG), Programmable Solutions Group (PSG), All Other and New Technology Group (NTG). It delivers computer, networking and communications platforms to a set of customers, including original equipment manufacturers (OEMs), original design manufacturers (ODMs), cloud and communications service providers, as well as industrial, communications and automotive equipment manufacturers. It offers platforms to integrate various components and technologies, including a microprocessor and chipset, a stand-alone System-on-Chip (SoC), or a multichip package. The CCG operating segment includes platforms that integrates in notebook, two in one systems, desktop computers for consumers and businesses, tablets, and phones.
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