Vimicro International (NASDAQ: VIMC) and Cabot Microelectronics Corporation (NASDAQ:CCMP) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitabiliy, analyst recommendations, earnings, institutional ownership and dividends.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vimicro International N/A N/A N/A N/A N/A
Cabot Microelectronics Corporation $473.27 million 3.94 $126.84 million $3.18 23.42

Cabot Microelectronics Corporation has higher revenue and earnings than Vimicro International.

Dividends

Cabot Microelectronics Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Vimicro International does not pay a dividend. Cabot Microelectronics Corporation pays out 25.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Vimicro International and Cabot Microelectronics Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vimicro International 0 0 0 0 N/A
Cabot Microelectronics Corporation 0 1 1 0 2.50

Cabot Microelectronics Corporation has a consensus price target of $75.00, suggesting a potential upside of 0.68%. Given Cabot Microelectronics Corporation’s higher probable upside, analysts clearly believe Cabot Microelectronics Corporation is more favorable than Vimicro International.

Institutional & Insider Ownership

95.0% of Cabot Microelectronics Corporation shares are held by institutional investors. 5.5% of Cabot Microelectronics Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Vimicro International 20.38% 17.78% 8.86%
Cabot Microelectronics Corporation 16.81% 16.69% 11.56%

Summary

Cabot Microelectronics Corporation beats Vimicro International on 7 of the 10 factors compared between the two stocks.

About Vimicro International

Vimicro International Corporation is a holding company. The Company is a provider of video surveillance technology and solutions that designs, develops and markets a range of video surveillance products and solutions to Government entities, private enterprises and consumers. It operates in two segments: Video surveillance solutions business and Video processors business. Video surveillance solutions business, which refers business activities that are engaged in the design, manufacture and sale of video surveillance solutions and products and provision of related services, and Video processors business, which refers business activities that are engaged in the design, manufacture and sale of video processors, including the video processors used in video surveillance solutions and personal computer camera processors. It provides video surveillance products and solutions ranging from front-end Internet Protocol cameras to back-end software platform using its chip and algorithm technology.

About Cabot Microelectronics Corporation

Cabot Microelectronics Corporation supplies polishing slurries and pads used in the manufacture of integrated circuit (IC) devices within the semiconductor industry, in a process called chemical mechanical planarization (CMP). The Company is engaged in the development, manufacture and sale of CMP consumables. The Company develops, produces and sells CMP slurries for polishing conducting and insulating materials used in IC devices, and also for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells CMP polishing pads, which are used in conjunction with slurries in the CMP process. The Company also pursues other surface modification applications through its engineered surface finishes (ESF) business. The Company offers CMP polishing pads, under the Epic and NexPlanar brand names, for a range of applications and technology nodes.

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