Semiconductor Manufacturing International Corporation (NYSE: SMI) and Sparton Corporation (NYSE:SPA) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Volatility and Risk

Semiconductor Manufacturing International Corporation has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Sparton Corporation has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares Semiconductor Manufacturing International Corporation and Sparton Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Semiconductor Manufacturing International Corporation $3.13 billion 1.67 $1.15 billion $0.34 13.94
Sparton Corporation $400.14 million 0.57 $22.79 million ($4.34) -5.33

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

Insider and Institutional Ownership

0.7% of Semiconductor Manufacturing International Corporation shares are owned by institutional investors. Comparatively, 67.9% of Sparton Corporation shares are owned by institutional investors. 5.0% of Sparton Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Semiconductor Manufacturing International Corporation and Sparton Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Semiconductor Manufacturing International Corporation 3 2 2 0 1.86
Sparton Corporation 0 2 0 0 2.00

Semiconductor Manufacturing International Corporation presently has a consensus price target of $8.68, suggesting a potential upside of 83.12%. Sparton Corporation has a consensus price target of $22.00, suggesting a potential downside of 4.84%. Given Semiconductor Manufacturing International Corporation’s higher probable upside, equities research analysts clearly believe Semiconductor Manufacturing International Corporation is more favorable than Sparton Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Semiconductor Manufacturing International Corporation 10.33% 5.63% 3.10%
Sparton Corporation -10.61% 12.79% 4.34%

Semiconductor Manufacturing International Corporation Company Profile

Semiconductor Manufacturing International Corporation is an investment holding company principally engaged in the computer-aided design, manufacture, packaging and trading of integrated circuits (IC), as well as the provision of other semiconductor services. The Company is also involved in the design and manufacture of semiconductor masks. The Company’s main products are various types of wafers. The Company distributes its products in domestic market and to overseas markets, such as the Europe and the United States.

Sparton Corporation Company Profile

Sparton Corporation is a provider of design, development and manufacturing services for electromechanical devices, as well as engineered products complementary to the same electromechanical value stream. The Company operates through two segments: Manufacturing & Design Services (MDS) and Engineered Components & Products (ECP). The Company serves the medical and biotechnology, military and aerospace, and industrial and commercial markets. Its products and services include offerings for original equipment manufacturers (OEM) and emerging technology (ET) customers, which utilize microprocessor-based systems, such as transducers, printed circuit boards and assemblies, and sensors, as well as development and design engineering services. It develops and manufactures sonobuoys, which are anti-submarine warfare (ASW) devices. The Company also manufactures rugged flat panel display systems for military panel personal computer workstations, air traffic control and industrial applications.

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