Jabil Circuit (NYSE: JBL) and Siliconware Precision Industries (NASDAQ:SPIL) are both mid-cap semiconductors – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Jabil Circuit and Siliconware Precision Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jabil Circuit 2 7 3 0 2.08
Siliconware Precision Industries 0 0 0 0 N/A

Jabil Circuit presently has a consensus target price of $29.70, indicating a potential upside of 3.66%. Given Jabil Circuit’s higher possible upside, equities research analysts clearly believe Jabil Circuit is more favorable than Siliconware Precision Industries.

Institutional and Insider Ownership

96.1% of Jabil Circuit shares are held by institutional investors. Comparatively, 2.8% of Siliconware Precision Industries shares are held by institutional investors. 2.9% of Jabil Circuit shares are held by insiders. Comparatively, 14.3% of Siliconware Precision Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Jabil Circuit and Siliconware Precision Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jabil Circuit 0.68% 14.47% 3.28%
Siliconware Precision Industries 9.79% 12.42% 6.68%

Volatility & Risk

Jabil Circuit has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Siliconware Precision Industries has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Earnings and Valuation

This table compares Jabil Circuit and Siliconware Precision Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Jabil Circuit $19.06 billion 0.27 $129.09 million $0.69 41.52
Siliconware Precision Industries $2.64 billion 1.86 $302.68 million $0.43 18.37

Siliconware Precision Industries has higher revenue, but lower earnings than Jabil Circuit. Siliconware Precision Industries is trading at a lower price-to-earnings ratio than Jabil Circuit, indicating that it is currently the more affordable of the two stocks.

Dividends

Jabil Circuit pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Siliconware Precision Industries pays an annual dividend of $0.21 per share and has a dividend yield of 2.7%. Jabil Circuit pays out 46.4% of its earnings in the form of a dividend. Siliconware Precision Industries pays out 48.8% 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.

Summary

Jabil Circuit beats Siliconware Precision Industries on 8 of the 15 factors compared between the two stocks.

About Jabil Circuit

Jabil Inc., formerly Jabil Circuit, Inc., provides electronic manufacturing services and solutions throughout the world. The Company operates in two segments, which include Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). The Company’s EMS segment is focused on leveraging information technology (IT), supply chain design and engineering, technologies centered on core electronics, sharing of its large scale manufacturing infrastructure and the ability to serve a range of markets. Its DMS segment is focused on providing engineering solutions and a focus on material sciences and technologies. It provides electronic design, production and product management services to companies in the automotive, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, emerging growth, healthcare, industrial and energy, mobility, packaging, point of sale and printing industries.

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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