Head to Head Analysis: Silicon Motion Technology (SIMO) & The Competition

Silicon Motion Technology (NASDAQ:SIMO) is one of 220 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its rivals? We will compare Silicon Motion Technology to related businesses based on the strength of its risk, valuation, profitability, earnings, analyst recommendations, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Silicon Motion Technology	19.36%	32.29%	18.34%
Silicon Motion Technology Competitors	-1,255.44%	-126.13%	-3.87%

Valuation and Earnings

This table compares Silicon Motion Technology and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Silicon Motion Technology	$1.63 billion	$122.64 million	19.47
Silicon Motion Technology Competitors	$1,259.17 billion	$2.53 billion	8.45

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

Volatility & Risk

Silicon Motion Technology has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Silicon Motion Technology’s rivals have a beta of 2.81, meaning that their average share price is 181% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Silicon Motion Technology and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicon Motion Technology	0	1	10	0	2.91
Silicon Motion Technology Competitors	3513	12391	25842	1004	2.57

Silicon Motion Technology currently has a consensus target price of $328.75, suggesting a potential upside of 81.96%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 36.34%. Given Silicon Motion Technology’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Silicon Motion Technology is more favorable than its rivals.

Dividends

Silicon Motion Technology pays an annual dividend of $2.30 per share and has a dividend yield of 1.3%. Silicon Motion Technology pays out 24.8% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 29.5% of their earnings in the form of a dividend. Silicon Motion Technology is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

78.0% of Silicon Motion Technology shares are owned by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 5.3% of Silicon Motion Technology shares are owned by company insiders. Comparatively, 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Silicon Motion Technology beats its rivals on 10 of the 15 factors compared.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation is a fabless semiconductor company that designs and markets NAND flash controllers and related storage solutions. Its products help manage data storage and retrieval in devices that use NAND flash memory. The company’s offerings include controllers for solid-state drives (SSDs), embedded storage such as eMMC and UFS, and removable storage products including memory cards and USB flash drives. Silicon Motion also develops firmware and other technologies for storage applications.