Analyzing Cree (CREE) and Xilinx (XLNX)
Xilinx (NASDAQ: XLNX) and Cree (NASDAQ:CREE) are both mid-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
This is a summary of recent recommendations for Xilinx and Cree, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Xilinx presently has a consensus price target of $63.89, suggesting a potential downside of 0.66%. Cree has a consensus price target of $23.32, suggesting a potential downside of 4.75%. Given Xilinx’s stronger consensus rating and higher probable upside, equities analysts plainly believe Xilinx is more favorable than Cree.
Insider & Institutional Ownership
97.4% of Xilinx shares are owned by institutional investors. Comparatively, 91.2% of Cree shares are owned by institutional investors. 0.4% of Xilinx shares are owned by company insiders. Comparatively, 1.3% of Cree shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Xilinx pays an annual dividend of $1.40 per share and has a dividend yield of 2.2%. Cree does not pay a dividend. Xilinx pays out 60.1% of its earnings in the form of a dividend. Xilinx has increased its dividend for 6 consecutive years.
Valuation & Earnings
This table compares Xilinx and Cree’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Xilinx||$2.39 billion||6.69||$755.86 million||$2.33||27.61|
|Cree||$1.47 billion||1.62||$101.00 million||($1.01)||-24.24|
Xilinx has higher revenue and earnings than Cree. Cree is trading at a lower price-to-earnings ratio than Xilinx, indicating that it is currently the more affordable of the two stocks.
This table compares Xilinx and Cree’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Xilinx has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Cree has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Xilinx beats Cree on 14 of the 16 factors compared between the two stocks.
Xilinx Company Profile
Xilinx, Inc. (Xilinx) is engaged in designing and developing programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (ICs) in the form of programmable logic devices (PLDs), including programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and various third-party verification and IP cores. The Company provides design services, customer training, field engineering and technical support. Its PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs) that its customers program to perform desired logic functions, and programmable SoCs, which combine (Advanced reduced instruction set computing (RISC) Machines (ARM)) processor-based systems with programmable logic in a single device.
Cree Company Profile
Cree, Inc. is a manufacturer of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Company’s products are focused for applications, such as indoor and outdoor lighting, video displays, transportation, electronic signs and signals, power supplies, inverters and wireless systems. The Company has three segments: Lighting Products, LED Products, and Power and RF Products. The Company’s Lighting Products segment offers LED lighting systems and bulbs. The Company’s LED Products segment offers LED components, LED chips and silicon carbide (SiC) materials. The Company’s Power and RF Products segment offers power devices and RF devices. The Company designs, manufactures and markets lighting systems for indoor and outdoor applications, with a focus on LED lighting systems for the commercial, industrial and consumer markets.
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