Linear Technology (NASDAQ: LLTC) is one of 100 public companies in the “Semiconductors” industry, but how does it compare to its peers? We will compare Linear Technology to related businesses based on the strength of its profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Volatility & Risk

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

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 -47.19% -0.05% 0.42%

Insider and Institutional Ownership

90.2% of Linear Technology shares are owned by institutional investors. Comparatively, 66.3% of shares of all “Semiconductors” companies are owned by institutional investors. 1.2% of Linear Technology shares are owned by company insiders. Comparatively, 6.2% of shares of all “Semiconductors” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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 51.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Linear Technology and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Linear Technology N/A N/A 31.86
Linear Technology Competitors $4.38 billion $573.56 million 39.99

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.

Analyst Ratings

This is a breakdown of recent recommendations for Linear Technology and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Linear Technology 0 3 0 0 2.00
Linear Technology Competitors 940 4802 8820 364 2.58

Linear Technology currently has a consensus target price of $63.00, suggesting a potential downside of 3.08%. As a group, “Semiconductors” companies have a potential upside of 13.64%. 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.

Linear Technology Company Profile

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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