Linear Technology (NASDAQ: LLTC) is one of 100 publicly-traded companies in the “Semiconductors” industry, but how does it weigh in compared to its rivals? We will compare Linear Technology to similar companies based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, dividends and profitability.

Profitability

This table compares Linear Technology and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Linear Technology 32.99% 26.98% 23.04%
Linear Technology Competitors -43.83% 1.25% 1.23%

Earnings and Valuation

This table compares Linear Technology and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Linear Technology N/A N/A 31.86
Linear Technology Competitors $4.38 billion $573.56 million 40.02

Linear Technology’s rivals have higher revenue and earnings than Linear Technology. Linear Technology is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

90.2% of Linear Technology shares are owned by institutional investors. Comparatively, 66.3% of shares of all “Semiconductors” companies are owned by institutional investors. 1.2% of Linear Technology shares are owned by company insiders. Comparatively, 6.2% of shares of all “Semiconductors” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Linear Technology has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Linear Technology’s rivals have a beta of 1.03, suggesting that their average share price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Linear Technology and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Linear Technology 0 3 0 0 2.00
Linear Technology Competitors 949 4816 8843 365 2.58

Linear Technology currently has a consensus price target of $63.00, indicating a potential downside of 3.08%. As a group, “Semiconductors” companies have a potential upside of 11.83%. Given Linear Technology’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Linear Technology has less favorable growth aspects than its rivals.

Dividends

Linear Technology pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. Linear Technology pays out 64.7% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 51.7% of their earnings in the form of a dividend.

Summary

Linear Technology rivals beat Linear Technology on 7 of the 13 factors compared.

About Linear Technology

Linear Technology Corporation is engaged in designing, manufacturing and marketing a line of analog integrated circuits. The Company produces power management, data conversion, signal conditioning, radio frequency (RF) and interface integrated circuits (ICs) and wireless sensor network products, among others. The Company’s principal product categories include amplifiers, high speed amplifiers, voltage regulators, voltage references, interfaces, data converters, battery stack monitors, silicon oscillators and timer blox, phase locked loop (PLL) synthesizers and clock distribution, SmartMesh embedded wireless sensor network, radio and microwave frequency circuits, Power Over Ethernet (PoE) Controllers, and Other. The Company’s products provide a bridge between analog world and the digital electronics in communications, networking, industrial, transportation, computer, medical, instrumentation, consumer, and military and aerospace systems.

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