AXT (AXTI) vs. Semiconductor Manufacturing International (SMI) Critical Review
AXT (NASDAQ: AXTI) and Semiconductor Manufacturing International (NYSE:SMI) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Institutional and Insider Ownership
60.4% of AXT shares are held by institutional investors. Comparatively, 0.7% of Semiconductor Manufacturing International shares are held by institutional investors. 6.9% of AXT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares AXT and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Semiconductor Manufacturing International||7.54%||4.06%||2.24%|
This is a summary of recent ratings for AXT and Semiconductor Manufacturing International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Semiconductor Manufacturing International||7||4||1||0||1.50|
AXT presently has a consensus price target of $9.94, suggesting a potential upside of 12.29%. Given AXT’s stronger consensus rating and higher probable upside, equities research analysts clearly believe AXT is more favorable than Semiconductor Manufacturing International.
Volatility and Risk
AXT has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.
Valuation and Earnings
This table compares AXT and Semiconductor Manufacturing International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AXT||$81.35 million||4.23||$5.63 million||$0.24||36.88|
|Semiconductor Manufacturing International||$2.91 billion||2.27||$376.63 million||$0.25||28.44|
Semiconductor Manufacturing International has higher revenue and earnings than AXT. Semiconductor Manufacturing International is trading at a lower price-to-earnings ratio than AXT, indicating that it is currently the more affordable of the two stocks.
AXT beats Semiconductor Manufacturing International on 11 of the 14 factors compared between the two stocks.
AXT Company Profile
AXT, Inc. (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials. The Company provides alternative or specialty materials in the form of substrates or wafers, including compound and single element substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). The Company uses its Vertical Gradient Freeze (VGF) technique for growing single crystal Indium Phosphide (InP), Gallium Arsenide (GaAs) and Germanium (Ge) ingots used to produce wafers for diverse electronic and optoelectronic device and circuit applications.
Semiconductor Manufacturing International Company Profile
Semiconductor Manufacturing International Corporation is an investment holding company principally engaged in the computer-aided design, manufacture, packaging and trading of integrated circuits (IC), as well as the provision of other semiconductor services. The Company is also involved in the design and manufacture of semiconductor masks. The Company’s main products are various types of wafers. The Company distributes its products in domestic market and to overseas markets, such as the Europe and the United States.
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