Head to Head Review: SemiLEDs (NASDAQ:LEDS) and Infineon Technologies (NASDAQ:IFNNY)

SemiLEDs (NASDAQ:LEDS) and Infineon Technologies (OTCMKTS:IFNNY) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares SemiLEDs and Infineon Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SemiLEDs -26.70% -82.21% -13.54%
Infineon Technologies 9.69% 9.91% 6.49%

Institutional & Insider Ownership

0.9% of SemiLEDs shares are owned by institutional investors. Comparatively, 0.2% of Infineon Technologies shares are owned by institutional investors. 39.8% of SemiLEDs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

SemiLEDs has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, Infineon Technologies has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Valuation and Earnings

This table compares SemiLEDs and Infineon Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SemiLEDs $5.90 million 1.80 -$3.57 million N/A N/A
Infineon Technologies $9.06 billion 2.90 $981.71 million $1.00 21.03

Infineon Technologies has higher revenue and earnings than SemiLEDs.

Analyst Recommendations

This is a summary of recent ratings and price targets for SemiLEDs and Infineon Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SemiLEDs 0 0 0 0 N/A
Infineon Technologies 1 5 4 0 2.30

Summary

Infineon Technologies beats SemiLEDs on 8 of the 11 factors compared between the two stocks.

SemiLEDs Company Profile

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips and LED components in the United States, Taiwan, the Netherlands, France, China, Germany, Hong Kong, and internationally. The company's products are used for general lighting applications, including street lights and commercial, industrial, system and residential lighting. Its LED chips also used in specialty industrial applications, such as ultraviolet, or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. The company also sells enhanced vertical, LED product series in blue, white, green, and UV in selected markets; LED chips to packagers or to distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packages and sells its LED chips into LED components to distributors. SemiLEDs Corporation was incorporated in 2005 and is headquartered in Chunan, Taiwan.

Infineon Technologies Company Profile

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and system solutions worldwide. The company operates in four segments: Automotive, Industrial Power Control, Power Management & Multimarket, and Digital Security Solutions. The Automotive segment offers automotive microcontrollers for powertrain, safety, and driver assistance systems; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and radar sensor integrated circuits (ICs); transceivers; and voltage regulators for use in assistance and safety systems, comfort electronics, and powertrain and security products. The Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, IGBT modules and stacks, and silicon carbide MOSEFTs and modules for electric vehicle charging stations, energy distribution, home appliances, industrial drives, industrial robots, industrial vehicles, renewable energy generation, and traction. The Power Management & Multimarket segment offers control ICs, customized chips, discrete low-voltage and high-voltage power MOSFETs and driver ICs, GPS low-noise amplifiers, MEMS and ASICs for pressure sensors and silicon microphones, radar sensor ICs, RF antenna switches and power transistors, silicon carbide diodes, and transient voltage suppressor diodes for use in cellular infrastructure, electric vehicle charging stations, DC motors, various components, Internet of Things, LED and conventional lighting systems, mobile devices, and power management. The Digital Security Solutions segment provides contact-based, contactless, dual interface, and embedded security controllers for authentication, automotive, government identification document, healthcare card, Internet of things, mobile communication, payment system, mobile payment, ticketing, access control, and trusted computing applications. Infineon Technologies AG is headquartered in Munich, Germany.

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