Critical Survey: Alpha and Omega Semiconductor (NASDAQ:AOSL) vs. Semiconductor Manufacturing International (OTCMKTS:SIUIF)

Alpha and Omega Semiconductor (NASDAQ:AOSL) and Semiconductor Manufacturing International (OTCMKTS:SIUIF) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

This table compares Alpha and Omega Semiconductor and Semiconductor Manufacturing International’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha and Omega Semiconductor	$691.32 million	0.89	$12.36 million	($0.63)	-34.48
Semiconductor Manufacturing International	N/A	N/A	N/A	N/A	N/A

Alpha and Omega Semiconductor has higher revenue and earnings than Semiconductor Manufacturing International.

Institutional & Insider Ownership

79.0% of Alpha and Omega Semiconductor shares are owned by institutional investors. 17.9% of Alpha and Omega Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Alpha and Omega Semiconductor and Semiconductor Manufacturing International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha and Omega Semiconductor	1	0	2	0	2.33
Semiconductor Manufacturing International	0	0	0	0	N/A

Alpha and Omega Semiconductor presently has a consensus target price of $31.00, indicating a potential upside of 42.73%. Given Alpha and Omega Semiconductor’s higher possible upside, analysts plainly believe Alpha and Omega Semiconductor is more favorable than Semiconductor Manufacturing International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alpha and Omega Semiconductor	-2.68%	0.64%	0.47%
Semiconductor Manufacturing International	N/A	N/A	N/A

Summary

Alpha and Omega Semiconductor beats Semiconductor Manufacturing International on 7 of the 8 factors compared between the two stocks.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers 650V SiC MOSFET, a switching solutions for solar inverters, motor drives, industrial power supplies, and energy storage systems. Further, it provides 750V SiC MOSFET for electric vehicle systems such as the on-board charge; transient voltage suppressors; silicon carbide product for industrial applications, such as solar inverters, UPS, and battery management systems. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.

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, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. 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.