Maxim Integrated Products (NASDAQ: MXIM) and Cabot Microelectronics (NASDAQ:CCMP) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
This is a summary of recent ratings for Maxim Integrated Products and Cabot Microelectronics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Maxim Integrated Products||0||11||6||0||2.35|
Maxim Integrated Products presently has a consensus target price of $58.20, suggesting a potential downside of 5.09%. Cabot Microelectronics has a consensus target price of $112.25, suggesting a potential downside of 2.01%. Given Cabot Microelectronics’ stronger consensus rating and higher possible upside, analysts clearly believe Cabot Microelectronics is more favorable than Maxim Integrated Products.
Institutional & Insider Ownership
90.7% of Maxim Integrated Products shares are held by institutional investors. Comparatively, 94.8% of Cabot Microelectronics shares are held by institutional investors. 1.1% of Maxim Integrated Products shares are held by insiders. Comparatively, 3.3% of Cabot Microelectronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Maxim Integrated Products has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Cabot Microelectronics has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares Maxim Integrated Products and Cabot Microelectronics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Maxim Integrated Products||$2.30 billion||7.47||$571.61 million||$2.12||28.92|
|Cabot Microelectronics||$507.18 million||5.80||$86.95 million||$3.56||32.18|
Maxim Integrated Products has higher revenue and earnings than Cabot Microelectronics. Maxim Integrated Products is trading at a lower price-to-earnings ratio than Cabot Microelectronics, indicating that it is currently the more affordable of the two stocks.
This table compares Maxim Integrated Products and Cabot Microelectronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Maxim Integrated Products||17.82%||35.78%||16.31%|
Maxim Integrated Products pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. Cabot Microelectronics pays an annual dividend of $1.60 per share and has a dividend yield of 1.4%. Maxim Integrated Products pays out 79.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cabot Microelectronics pays out 44.9% of its earnings in the form of a dividend. Maxim Integrated Products has raised its dividend for 8 consecutive years. Maxim Integrated Products is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Maxim Integrated Products beats Cabot Microelectronics on 9 of the 17 factors compared between the two stocks.
About Maxim Integrated Products
Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, rest of Asia, Europe, and internationally. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. It serves automotive, communications and data center, computing, consumer, and industrial markets. The company markets its products through a direct-sales and applications organization, as well as through its own and other unaffiliated distribution channels. Maxim Integrated Products, Inc. was founded in 1983 and is headquartered in San Jose, California.
About Cabot Microelectronics
Cabot Microelectronics Corporation, together with its subsidiaries, develops, manufactures, and sells polishing slurries and pads used in the manufacture of advanced integrated circuit (IC) devices in the semiconductor industry in a process called chemical mechanical planarization (CMP). The CMP technology is a polishing process used by IC device manufacturers to planarize or flatten the multiple layers of material that are deposited upon silicon wafers. The company offers CMP slurries, which are liquid solutions composed of high-purity deionized water, proprietary chemical additives, and engineered abrasives that chemically and mechanically interact with the surface material of the IC device at an atomic level; and CMP pads that are engineered polymeric materials designed to distribute and transport the slurry to the surface of the wafer and distribute it evenly across the wafer. Its CMP slurries are used for polishing various materials that conduct electrical signals, including tungsten, copper, tantalum, and aluminum; and certain materials that are used in the production of rigid disks and magnetic heads for hard disk drives, as well as used in the dielectric insulating materials that separate conductive layers within logic and memory IC devices. The company also designs and produces precision polishing and metrology systems to attain near-perfect shape and surface finish on various optical components, such as mirrors, lenses, and prisms. It serves the producers of logic IC devices or memory IC devices, and providers of IC foundry services directly, as well as through distributors. The company has a strategic collaboration with Fujimi Incorporated. It operates in the United States, Asia, and Europe. Cabot Microelectronics Corporation was founded in 1999 and is headquartered in Aurora, Illinois.
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