Semiconductor Manufacturing International (OTCMKTS:SMICY) and Power Integrations (NASDAQ:POWI) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Insider & Institutional Ownership

0.1% of Semiconductor Manufacturing International shares are held by institutional investors. Comparatively, 98.2% of Power Integrations shares are held by institutional investors. 2.1% of Power Integrations shares are held by company 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.

Earnings & Valuation

This table compares Semiconductor Manufacturing International and Power Integrations’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Semiconductor Manufacturing International $3.12 billion 5.67 $234.68 million $0.21 83.33
Power Integrations $420.67 million 8.38 $193.47 million $1.78 66.37

Semiconductor Manufacturing International has higher revenue and earnings than Power Integrations. Power Integrations 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.

Analyst Ratings

This is a summary of current recommendations for Semiconductor Manufacturing International and Power Integrations, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semiconductor Manufacturing International 1 1 0 1 2.33
Power Integrations 1 1 2 0 2.25

Power Integrations has a consensus target price of $99.75, suggesting a potential downside of 15.56%. Given Power Integrations’ higher probable upside, analysts clearly believe Power Integrations is more favorable than Semiconductor Manufacturing International.

Profitability

This table compares Semiconductor Manufacturing International and Power Integrations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Semiconductor Manufacturing International 7.64% 2.58% 1.54%
Power Integrations 45.82% 9.81% 8.75%

Volatility & Risk

Semiconductor Manufacturing International has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Summary

Power Integrations beats Semiconductor Manufacturing International on 10 of the 15 factors compared between the two stocks.

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.

About Power Integrations

Power Integrations, Inc. designs, develops, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company offers a range of alternating current to direct current (DC) power conversion products that address power supply ranging from less than 1 watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, and other consumer and industrial applications, as well as light-emitting diode lighting. It also provides high-voltage diodes; and high-voltage gate-driver products under the SCALE and SCALE-2 product-family names. In addition, the company offers motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, pumps, fans and blowers, dishwashers, and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct staff, as well as through a network of independent sales representatives and distributors. Power Integrations, Inc. was founded in 1988 and is headquartered in San Jose, California.

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