Comparing DSP Group (DSPG) and SUMCO Corp/ADR (SUOPY)

DSP Group (NASDAQ:DSPG) and SUMCO Corp/ADR (OTCMKTS:SUOPY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Dividends

SUMCO Corp/ADR pays an annual dividend of $0.29 per share and has a dividend yield of 1.0%. DSP Group does not pay a dividend. SUMCO Corp/ADR pays out 17.7% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares DSP Group and SUMCO Corp/ADR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DSP Group $124.75 million 2.08 -$3.00 million $0.17 68.06
SUMCO Corp/ADR $2.32 billion 1.82 $240.45 million $1.64 17.63

SUMCO Corp/ADR has higher revenue and earnings than DSP Group. SUMCO Corp/ADR is trading at a lower price-to-earnings ratio than DSP Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DSP Group and SUMCO Corp/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DSP Group -1.28% 3.71% 2.95%
SUMCO Corp/ADR 13.04% 13.62% 7.09%

Risk and Volatility

DSP Group has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, SUMCO Corp/ADR has a beta of 2.4, suggesting that its stock price is 140% more volatile than the S&P 500.

Insider and Institutional Ownership

79.5% of DSP Group shares are owned by institutional investors. 5.3% of DSP Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for DSP Group and SUMCO Corp/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DSP Group 0 0 4 0 3.00
SUMCO Corp/ADR 0 0 0 0 N/A

DSP Group currently has a consensus target price of $15.75, indicating a potential upside of 36.13%. Given DSP Group’s higher possible upside, equities analysts clearly believe DSP Group is more favorable than SUMCO Corp/ADR.

Summary

SUMCO Corp/ADR beats DSP Group on 8 of the 15 factors compared between the two stocks.

DSP Group Company Profile

DSP Group, Inc., a fabless semiconductor company, provides wireless and audio chipset solutions for converged communications worldwide. It operates through three segments: Home, Office, and SmartVoice. The company provides a portfolio of wireless chipsets that integrate DECT/CAT-iq, ULE, Wi-Fi, PSTN, HDClear, video, and VoIP technologies. It also enables converged voice, audio, video, and data connectivity across various mobile, consumer, and enterprise products, including mobile phones, IoT and wearable devices, connected multimedia screens, home automation and security, cordless phones, VoIP systems, and home gateways. The company sells its products primarily through distributors, as well as directly to original equipment manufacturers and original design manufacturers. DSP Group, Inc. was founded in 1979 and is headquartered in Milpitas, California.

SUMCO Corp/ADR Company Profile

Sumco Corporation, together with its subsidiaries, manufactures and sells silicon wafers for the semiconductor industry in Japan, North America, Asia, and Europe. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was founded in 1999 and is headquartered in Tokyo, Japan.

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