Silicom (NASDAQ: SILC) and Oplink Communications (NASDAQ:OPLK) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Institutional and Insider Ownership

21.7% of Silicom shares are owned by institutional investors. 25.4% of Silicom shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Silicom and Oplink Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicom 13.68% 12.77% 10.32%
Oplink Communications N/A N/A N/A

Dividends

Silicom pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Oplink Communications does not pay a dividend. Silicom pays out 47.6% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Silicom and Oplink Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Silicom $100.35 million 5.08 $13.13 million $2.10 32.87
Oplink Communications N/A N/A N/A $0.05 N/A

Silicom has higher revenue and earnings than Oplink Communications. Oplink Communications is trading at a lower price-to-earnings ratio than Silicom, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Silicom and Oplink Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicom 0 0 1 0 3.00
Oplink Communications 0 0 0 0 N/A

Silicom currently has a consensus price target of $75.00, suggesting a potential upside of 8.65%.

Summary

Silicom beats Oplink Communications on 9 of the 10 factors compared between the two stocks.

About Silicom

Silicom Ltd. (Silicom) is engaged in the design, manufacture, marketing and support of networking and data infrastructure solutions for a range of servers, server-based systems and communications devices. The Company’s products include server network interface cards with and without bypass (Server Adapters); Intelligent and programmable cards, with features, such as encryption, acceleration, data compression, redirection, time stamping, network capture solutions, field programmable gate array (FPGA) based ultra-low latency solutions, and/or other offload features and/or compute blades (Smart Cards), and standalone Products. The Company’s market segments for its products include network appliances; servers; data storage, including Big Data; The Cloud, virtualized data centers, with and without software-defined networking (SDN), and Internet of Things (IOT).

About Oplink Communications

Oplink Communications, Inc. designs, manufactures and sells optical networking components and subsystems. The Company’s products expand optical bandwidth, amplify optical signals, monitor and protect wavelength performance, redirect light signals, ensure signal connectivity and provide signal transmission and reception within an optical network. The Company provides over 350 different products that are sold as components and modules, or is integrated into custom solutions. The Company’s products and solutions can be applied to all segments of the fiber optic network infrastructure including long-haul networks, metropolitan area networks (MANs), local area networks (LANs), wireless backhaul, Internet data centers and fiber-to-the-home (FTTH) networks.

Receive News & Ratings for Silicom Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Silicom Ltd and related companies with MarketBeat.com's FREE daily email newsletter.