Linear Technology (NASDAQ: LLTC) is one of 101 public companies in the “Semiconductors” industry, but how does it weigh in compared to its peers? We will compare Linear Technology to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Profitability

This table compares Linear Technology and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Linear Technology 32.99% 26.98% 23.04%
Linear Technology Competitors -45.86% 1.10% 1.22%

Dividends

Linear Technology pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. Linear Technology pays out 64.7% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 55.0% of their earnings in the form of a dividend.

Volatility and Risk

Linear Technology has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Linear Technology’s peers have a beta of 1.02, indicating that their average stock price is 2% more volatile than the S&P 500.

Earnings & Valuation

This table compares Linear Technology and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Linear Technology N/A N/A 31.86
Linear Technology Competitors $4.31 billion $520.00 million 41.92

Linear Technology’s peers have higher revenue and earnings than Linear Technology. Linear Technology is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

90.2% of Linear Technology shares are held by institutional investors. Comparatively, 65.1% of shares of all “Semiconductors” companies are held by institutional investors. 1.2% of Linear Technology shares are held by insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Linear Technology and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Linear Technology 0 3 0 0 2.00
Linear Technology Competitors 937 4792 8778 363 2.58

Linear Technology presently has a consensus price target of $63.00, suggesting a potential downside of 3.08%. As a group, “Semiconductors” companies have a potential upside of 14.32%. Given Linear Technology’s peers stronger consensus rating and higher possible upside, analysts clearly believe Linear Technology has less favorable growth aspects than its peers.

Summary

Linear Technology peers beat Linear Technology on 7 of the 13 factors compared.

About Linear Technology

Linear Technology Corporation is engaged in designing, manufacturing and marketing a line of analog integrated circuits. The Company produces power management, data conversion, signal conditioning, radio frequency (RF) and interface integrated circuits (ICs) and wireless sensor network products, among others. The Company’s principal product categories include amplifiers, high speed amplifiers, voltage regulators, voltage references, interfaces, data converters, battery stack monitors, silicon oscillators and timer blox, phase locked loop (PLL) synthesizers and clock distribution, SmartMesh embedded wireless sensor network, radio and microwave frequency circuits, Power Over Ethernet (PoE) Controllers, and Other. The Company’s products provide a bridge between analog world and the digital electronics in communications, networking, industrial, transportation, computer, medical, instrumentation, consumer, and military and aerospace systems.

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