Analog Devices (NASDAQ: ADI) is one of 105 public companies in the “Semiconductors” industry, but how does it contrast to its competitors? We will compare Analog Devices to related companies based on the strength of its profitability, valuation, dividends, risk, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Analog Devices and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Analog Devices 0 9 16 0 2.64
Analog Devices Competitors 1147 5256 8803 409 2.54

Analog Devices presently has a consensus target price of $93.27, indicating a potential upside of 11.45%. As a group, “Semiconductors” companies have a potential upside of 14.01%. Given Analog Devices’ competitors higher probable upside, analysts clearly believe Analog Devices has less favorable growth aspects than its competitors.

Profitability

This table compares Analog Devices and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Analog Devices 14.77% 19.06% 8.78%
Analog Devices Competitors -47.47% -0.21% -0.21%

Dividends

Analog Devices pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. Analog Devices pays out 86.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors” companies pay a dividend yield of 1.5% and pay out 58.5% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Analog Devices and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Analog Devices $4.57 billion $1.83 billion 40.04
Analog Devices Competitors $4.52 billion $1.30 billion 83.90

Analog Devices has higher revenue and earnings than its competitors. Analog Devices is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Analog Devices has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Analog Devices’ competitors have a beta of 1.07, indicating that their average stock price is 7% more volatile than the S&P 500.

Institutional & Insider Ownership

86.7% of Analog Devices shares are owned by institutional investors. Comparatively, 67.0% of shares of all “Semiconductors” companies are owned by institutional investors. 1.1% of Analog Devices shares are owned by insiders. Comparatively, 6.6% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Analog Devices beats its competitors on 10 of the 15 factors compared.

Analog Devices Company Profile

Analog Devices, Inc. (Analog Devices) designs, manufactures and markets a portfolio of solutions that leverage high-performance analog, mixed-signal and digital signal processing technology, including integrated circuits (ICs), algorithms, software and subsystems. Its products include Analog Products, Converters, Amplifiers/Radio Frequency, Other Analog, Power Management and Reference, and Digital Signal Processing Products. The Company is a supplier of data converter products. The Company is a supplier of high-performance amplifiers. Its analog product line also includes products of high performance radio frequency (RF) ICs. The Company’s DSPs are used for high-speed numeric calculations. The Company offers its products for applications in various end markets, such as industrial, automotive, consumer and communications. The Company operates in the United States, Rest of North/South America, Europe, Japan and China.

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