Comparing Sigma Designs (OTCMKTS:SIGM) and Freedom Acquisition I (NASDAQ:FACT)

Sigma Designs (OTCMKTS:SIGM) and Freedom Acquisition I (NASDAQ:FACT) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sigma Designs and Freedom Acquisition I, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sigma Designs	0	0	0	0	0.00
Freedom Acquisition I	1	0	0	0	1.00

Profitability

This table compares Sigma Designs and Freedom Acquisition I’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sigma Designs	N/A	N/A	N/A
Freedom Acquisition I	N/A	-31.14%	1.67%

Valuation & Earnings

This table compares Sigma Designs and Freedom Acquisition I”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A
Freedom Acquisition I	N/A	N/A	$5.98 million	N/A	N/A

Freedom Acquisition I has lower revenue, but higher earnings than Sigma Designs.

Institutional and Insider Ownership

55.8% of Freedom Acquisition I shares are held by institutional investors. 4.5% of Sigma Designs shares are held by insiders. Comparatively, 0.2% of Freedom Acquisition I shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Sigma Designs has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Freedom Acquisition I has a beta of 0.01, meaning that its stock price is 99% less volatile than the S&P 500.

About Sigma Designs

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.

About Freedom Acquisition I

Freedom Acquisition I Corp. does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or related business combination with one or more businesses. Freedom Acquisition I Corp. was incorporated in 2020 and is based in New York, New York.