Diodes (NASDAQ: DIOD) and OmniVision Technologies (NASDAQ:OVTI) are both semiconductors – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Diodes and OmniVision Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diodes 1 3 1 0 2.00
OmniVision Technologies 0 0 0 0 N/A

Diodes currently has a consensus target price of $34.50, suggesting a potential upside of 1.08%.

Profitability

This table compares Diodes and OmniVision Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diodes 2.68% 5.64% 3.07%
OmniVision Technologies 4.06% 4.74% 3.77%

Valuation & Earnings

This table compares Diodes and OmniVision Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Diodes $942.16 million 1.78 $15.93 million $0.53 64.40
OmniVision Technologies N/A N/A N/A $0.87 N/A

Diodes has higher revenue and earnings than OmniVision Technologies. OmniVision Technologies is trading at a lower price-to-earnings ratio than Diodes, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

73.6% of Diodes shares are owned by institutional investors. 7.0% of Diodes shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Diodes beats OmniVision Technologies on 5 of the 8 factors compared between the two stocks.

Diodes Company Profile

Diodes Incorporated is a manufacturer and supplier of application-specific standard products within the discrete, logic, analog and mixed-signal semiconductor markets, serving the consumer electronics, computing, communications, industrial and automotive markets. The Company’s products include diodes; rectifiers; transistors; metal-oxide semiconductor field-effect transistors (MOSFETs); protection devices; amplifiers and comparators; Hall-effect and temperature sensors, and power management devices, including light emitting diode (LED) drivers, alternating current (AC)-direct current (DC) and DC-DC switching, linear voltage regulators and voltage references, along with special function devices, such as universal serial bus (USB) power switches, load switches, voltage supervisors and motor controllers. It also holds interests in Pericom Semiconductor Corporation, which designs, develops and markets integrated circuits (ICs) and frequency control products (FCPs).

OmniVision Technologies Company Profile

OmniVision Technologies, Inc. (OmniVision) designs, develops, manufactures and markets image-sensor devices. The Company’s primary product, a semiconductor image-sensing device called the CameraChip, is used to capture an image electronically, and is used in a range of consumer and commercial mass-market applications. Its CameraChip image sensors are manufactured using the complementary metal oxide semiconductor (CMOS) fabrication process and are primarily single-chip solutions that integrate various functions, including image capture, image processing, color processing, signal conversion and output of a processed image or video stream. The Company has also integrated its CameraChip image sensors with wafer-level optics, called CameraCubeChip imaging devices. Its CameraCubeChip imaging device is a small-footprint, total camera solution. OmniVision, through Aurora Systems, Inc., offers a dual-camera video sharing technology called Video-in-Video (ViV).

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