indie Semiconductor (NASDAQ:INDI – Get Free Report) and Semtech (NASDAQ:SMTC – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares indie Semiconductor and Semtech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| indie Semiconductor | -61.59% | -28.08% | -17.01% |
| Semtech | -99.08% | N/A | -2.28% |
Earnings and Valuation
This table compares indie Semiconductor and Semtech”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| indie Semiconductor | $216.68 million | 1.93 | -$117.62 million | ($0.76) | -2.64 |
| Semtech | $909.29 million | 3.30 | -$1.09 billion | ($2.64) | -13.13 |
indie Semiconductor has higher earnings, but lower revenue than Semtech. Semtech is trading at a lower price-to-earnings ratio than indie Semiconductor, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
67.7% of indie Semiconductor shares are held by institutional investors. 8.2% of indie Semiconductor shares are held by company insiders. Comparatively, 0.6% of Semtech shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
indie Semiconductor has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Semtech has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for indie Semiconductor and Semtech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| indie Semiconductor | 0 | 1 | 5 | 0 | 2.83 |
| Semtech | 0 | 2 | 11 | 0 | 2.85 |
indie Semiconductor presently has a consensus target price of $7.50, indicating a potential upside of 273.13%. Semtech has a consensus target price of $56.92, indicating a potential upside of 64.21%. Given indie Semiconductor’s higher possible upside, research analysts clearly believe indie Semiconductor is more favorable than Semtech.
Summary
indie Semiconductor beats Semtech on 8 of the 14 factors compared between the two stocks.
About indie Semiconductor
indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.
About Semtech
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, it offers portfolio of IoT solutions, such as modules, gateways, routers, and connected services; and portfolio of connected services, including wireless connectivity and cloud-based services for industrial, medical and communications applications. The company serves original equipment manufacturers and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in Asia- Pacific, North America, and Europe. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.
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