Cabot Microelectronics (CCMP) vs. Intermolecular (IMI) Critical Comparison

Cabot Microelectronics (NASDAQ: CCMP) and Intermolecular (NASDAQ:IMI) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Earnings and Valuation

This table compares Cabot Microelectronics and Intermolecular’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cabot Microelectronics $507.18 million 5.83 $86.95 million $3.56 32.37
Intermolecular $37.20 million 2.08 -$10.40 million N/A N/A

Cabot Microelectronics has higher revenue and earnings than Intermolecular.

Profitability

This table compares Cabot Microelectronics and Intermolecular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cabot Microelectronics 13.33% 18.41% 13.06%
Intermolecular -14.05% -14.29% -11.57%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Cabot Microelectronics and Intermolecular, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cabot Microelectronics 0 1 3 0 2.75
Intermolecular 0 0 0 0 N/A

Cabot Microelectronics presently has a consensus target price of $112.25, suggesting a potential downside of 2.59%. Given Cabot Microelectronics’ higher possible upside, equities analysts clearly believe Cabot Microelectronics is more favorable than Intermolecular.

Volatility and Risk

Cabot Microelectronics has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Intermolecular has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Insider and Institutional Ownership

94.8% of Cabot Microelectronics shares are held by institutional investors. Comparatively, 37.0% of Intermolecular shares are held by institutional investors. 3.3% of Cabot Microelectronics shares are held by insiders. Comparatively, 46.0% of Intermolecular shares are held by 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.

Dividends

Cabot Microelectronics pays an annual dividend of $1.60 per share and has a dividend yield of 1.4%. Intermolecular does not pay a dividend. Cabot Microelectronics pays out 44.9% of its earnings in the form of a dividend.

Summary

Cabot Microelectronics beats Intermolecular on 11 of the 13 factors compared between the two stocks.

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.

About Intermolecular

Intermolecular, Inc. engages in the development of advanced materials using high productivity combinatorial (HPC) technology platform for the semiconductors, consumer electronics, automotive, and aerospace industries worldwide. The company's HPC platform includes Tempus processing tools, automated characterization methods, and informatics analysis software for research and development using combinatorial process systems in concert with established chemical vapor deposition, physical vapor deposition, and atomic layer deposition methods. It serves various markets, including semiconductor, glass, advanced alloys, light-emitting diodes, flat-panel displays, and others. The company was formerly known as The BEP Group, Inc. and changed its name to Intermolecular, Inc. in November 2004. Intermolecular, Inc. was founded in 2004 and is headquartered in San Jose, California.

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