Cabot Microelectronics (NASDAQ:CCMP) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Cabot Microelectronics and Semiconductor Manufacturing International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot Microelectronics 0 0 5 0 3.00
Semiconductor Manufacturing International 0 0 0 0 N/A

Cabot Microelectronics currently has a consensus target price of $136.50, suggesting a potential downside of 3.02%. Given Cabot Microelectronics’ higher probable upside, equities analysts plainly believe Cabot Microelectronics is more favorable than Semiconductor Manufacturing International.

Institutional and Insider Ownership

99.6% of Cabot Microelectronics shares are held by institutional investors. Comparatively, 0.1% of Semiconductor Manufacturing International shares are held by institutional investors. 2.2% of Cabot Microelectronics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Cabot Microelectronics pays an annual dividend of $1.68 per share and has a dividend yield of 1.2%. Semiconductor Manufacturing International does not pay a dividend. Cabot Microelectronics pays out 32.2% of its earnings in the form of a dividend. Cabot Microelectronics has raised its dividend for 2 consecutive years.

Profitability

This table compares Cabot Microelectronics and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabot Microelectronics 11.76% 21.77% 11.89%
Semiconductor Manufacturing International 1.84% 0.64% 0.39%

Risk & Volatility

Cabot Microelectronics has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cabot Microelectronics and Semiconductor Manufacturing International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cabot Microelectronics $590.12 million 6.93 $110.04 million $5.22 26.96
Semiconductor Manufacturing International $3.36 billion 1.96 $134.05 million $0.15 43.60

Semiconductor Manufacturing International has higher revenue and earnings than Cabot Microelectronics. Cabot Microelectronics is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International, indicating that it is currently the more affordable of the two stocks.

Summary

Cabot Microelectronics beats Semiconductor Manufacturing International on 12 of the 16 factors compared between the two stocks.

About Cabot Microelectronics

Cabot Microelectronics Corp. engages in the development, manufacture, and sale of chemical mechanical planarization consumables products. The firm offers chemical mechanical planarization slurries for polishing many of the conducting, insulating and isolating materials used in integrated circuit devices, and for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells chemical mechanical planarization polishing pads, which are used in conjunction with slurries in the chemical mechanical planarization process. The company was founded by William P. Noglows in October 1999 and is headquartered in Aurora, IL.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, assembly and final testing of integrated circuits; and sales of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in the United States, Europe, and the Asia Pacific. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

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