Critical Comparison: STMicroelectronics (STM) & Exar (EXAR)
STMicroelectronics (NYSE: STM) and Exar (NYSE:EXAR) are both semiconductors – nec companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
Earnings & Valuation
This table compares STMicroelectronics and Exar’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|STMicroelectronics||$6.97 billion||2.96||$165.00 million||$0.66||34.27|
STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Exar does not pay a dividend. STMicroelectronics pays out 30.3% of its earnings in the form of a dividend.
This table compares STMicroelectronics and Exar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for STMicroelectronics and Exar, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
STMicroelectronics currently has a consensus target price of $20.17, suggesting a potential downside of 10.85%. Exar has a consensus target price of $13.00, suggesting a potential upside of 0.08%. Given Exar’s higher possible upside, analysts plainly believe Exar is more favorable than STMicroelectronics.
Insider & Institutional Ownership
5.1% of STMicroelectronics shares are held by institutional investors. Comparatively, 78.8% of Exar shares are held by institutional investors. 2.5% of Exar shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
STMicroelectronics has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Exar has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
STMicroelectronics beats Exar on 8 of the 13 factors compared between the two stocks.
STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company’s segments include Automotive and Discrete Group (ADG), Analog and MEMS Group (AMG), Microcontrollers and Digital ICs Group (MDG), and Others. ADG comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. AMG includes low-power analog ICs for all markets; smart power products; Touch Screen Controllers; Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products. MDG comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories. The Others segment includes all the financial values related to the Imaging Product Division, Subsystems and other products.
Exar Corporation (Exar) designs, develops and markets analog mixed-signal integrated circuits (ICs) and sub-system solutions. The Company’s products are deployed in a range of applications, such as industrial, instrumentation and medical equipment, networking and telecommunication systems, servers, enterprise storage systems, flat panel displays, light emitting diode (LED) lighting solutions, set top boxes and digital video recorders. Exar’s product portfolio includes connectivity, power management, high performance analog, communications, processors, flat panel display and LED lighting. The Company designs and develops amplifiers and data converters that support a range of signal path and conditioning needs of networking, industrial control and embedded applications. The Company markets its products to three primary markets, such as industrial and embedded systems, consumer and infrastructure.
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