Head-To-Head Analysis: Viavi Solutions (VIAV) and Silicon Motion Technology (SIMO)
Viavi Solutions (NASDAQ:VIAV) and Silicon Motion Technology (NASDAQ:SIMO) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.
This table compares Viavi Solutions and Silicon Motion Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silicon Motion Technology||18.91%||21.30%||17.04%|
This table compares Viavi Solutions and Silicon Motion Technology’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Viavi Solutions||$880.40 million||3.22||-$46.00 million||$0.34||36.53|
|Silicon Motion Technology||$530.35 million||2.78||$100.27 million||$3.41||11.96|
Silicon Motion Technology has lower revenue, but higher earnings than Viavi Solutions. Silicon Motion Technology is trading at a lower price-to-earnings ratio than Viavi Solutions, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
91.2% of Viavi Solutions shares are owned by institutional investors. Comparatively, 71.6% of Silicon Motion Technology shares are owned by institutional investors. 0.5% of Viavi Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Viavi Solutions has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Silicon Motion Technology has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Silicon Motion Technology pays an annual dividend of $1.19 per share and has a dividend yield of 2.9%. Viavi Solutions does not pay a dividend. Silicon Motion Technology pays out 34.9% of its earnings in the form of a dividend. Silicon Motion Technology has increased its dividend for 3 consecutive years.
This is a summary of current ratings and recommmendations for Viavi Solutions and Silicon Motion Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silicon Motion Technology||0||2||9||0||2.82|
Viavi Solutions presently has a consensus price target of $12.87, indicating a potential upside of 3.58%. Silicon Motion Technology has a consensus price target of $51.49, indicating a potential upside of 26.21%. Given Silicon Motion Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Silicon Motion Technology is more favorable than Viavi Solutions.
Silicon Motion Technology beats Viavi Solutions on 11 of the 17 factors compared between the two stocks.
About Viavi Solutions
Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military, and avionics customers worldwide. The company operates through Network Enablement, Service Enablement, and Optical Security and Performance Products segments. The Network Enablement segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The Service Enablement segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The Optical Security and Performance Products segment offers optical products for anti-counterfeiting, government, industrial, automotive, and consumer electronic markets, including 3D sensing applications. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1979 and is headquartered in San Jose, California.
About Silicon Motion Technology
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets semiconductor solutions for the mobile and enterprise storage, and mobile communications markets worldwide. It offers embedded storage and expandable storage products, including NAND flash controllers, such as embedded multimediacard (eMMC), universal flash storage, client solid-state drive (SSD), secure digital card, flash memory card controller, and universal serial bus flash drive controller products. The company also provides specialty storage solutions, such as customized enterprise-grade peripheral component interconnect express SSDs; and industrial-grade and commercial-grade single-chip SSDs. In addition, it offers specialty radio frequency integrated circuits (RF ICs), such as mobile TV system-on-chips (SoCs) and low power WiFi SoCs. The company's products are used in smartphones, tablets, digital cameras, camcorders, and desktop and notebook PCs, as well as in industrial, enterprise, commercial, and other applications. It offers its controllers under the SMI brand; enterprise-grade SSDs under the Shannon brand; single-chip industrial-grade SSDs under the Ferri SSD and Ferri-eMMC brands; RF ICs under the FCI brand; and software-defined storage products under the Bigtera brand. The company markets and sells its products through direct sales personnel and independent electronics distributors to flash manufacturers, original equipment manufacturers, and module makers. Silicon Motion Technology Corporation was founded in 1995 and is based in Kowloon, Hong Kong.
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