Sanmina (SANM) & Microsemi (MSCC) Head-To-Head Analysis

Sanmina (NASDAQ: SANM) and Microsemi (NASDAQ:MSCC) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Profitability

This table compares Sanmina and Microsemi’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sanmina -0.88% 11.61% 5.07%
Microsemi 11.10% 21.50% 9.55%

Analyst Ratings

This is a breakdown of current ratings and target prices for Sanmina and Microsemi, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sanmina 0 3 2 0 2.40
Microsemi 0 2 11 0 2.85

Sanmina presently has a consensus price target of $37.25, indicating a potential upside of 43.55%. Microsemi has a consensus price target of $66.60, indicating a potential upside of 15.56%. Given Sanmina’s higher possible upside, equities research analysts plainly believe Sanmina is more favorable than Microsemi.

Valuation & Earnings

This table compares Sanmina and Microsemi’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sanmina $6.87 billion 0.27 $138.83 million ($0.95) -27.32
Microsemi $1.81 billion 3.74 $176.30 million $1.74 33.12

Microsemi has lower revenue, but higher earnings than Sanmina. Sanmina is trading at a lower price-to-earnings ratio than Microsemi, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Sanmina has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Microsemi has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

91.2% of Sanmina shares are owned by institutional investors. Comparatively, 97.7% of Microsemi shares are owned by institutional investors. 5.1% of Sanmina shares are owned by company insiders. Comparatively, 0.6% of Microsemi shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Microsemi beats Sanmina on 11 of the 14 factors compared between the two stocks.

Sanmina Company Profile

Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.

Microsemi Company Profile

Microsemi Corporation is a designer, manufacturer and marketer of analog and mixed-signal semiconductor solutions differentiated by power, security, reliability and performance. The Company offers a portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets. Its products include high-performance and radiation-hardened analog mixed-signal integrated circuits (ICs), field programmable gate arrays (FPGAs), system on chip solutions (SoCs) and application-specific integrated circuits (ASICs) and power management products. The Company’s marketed products include Switchtec PFX PCIe switch, Flashtec NVM Express (NVMe)2032 and NVMe2016 controllers, Flashtec NVM Express (NVMe)2108 eight channel and NVMe2104 four channel controllers, PDS-EM-8100 PoE 2.5 gigabits per second (Gbps) Multiplexer, Chip Scale Atomic Clock (CSAC) components and miTimePLL.

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