Financial Survey: EMCORE (EMKR) vs. Dialog Semiconductor (DLGNF)

EMCORE (NASDAQ:EMKR) and Dialog Semiconductor (OTCMKTS:DLGNF) are both small-cap 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, valuation, dividends, profitability, risk and analyst recommendations.

Valuation & Earnings

This table compares EMCORE and Dialog Semiconductor’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EMCORE $122.89 million 1.16 $8.23 million $0.39 13.28
Dialog Semiconductor $1.35 billion 1.45 $173.91 million $2.92 8.63

Dialog Semiconductor has higher revenue and earnings than EMCORE. Dialog Semiconductor is trading at a lower price-to-earnings ratio than EMCORE, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares EMCORE and Dialog Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EMCORE -10.45% -6.84% -5.79%
Dialog Semiconductor 11.37% 18.71% 16.05%

Institutional and Insider Ownership

70.6% of EMCORE shares are owned by institutional investors. 2.0% of EMCORE 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 current recommendations for EMCORE and Dialog Semiconductor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EMCORE 0 0 3 0 3.00
Dialog Semiconductor 1 3 0 0 1.75

EMCORE currently has a consensus price target of $5.67, suggesting a potential upside of 9.40%. Given EMCORE’s stronger consensus rating and higher probable upside, analysts plainly believe EMCORE is more favorable than Dialog Semiconductor.

Risk and Volatility

EMCORE has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Dialog Semiconductor has a beta of 3.34, indicating that its share price is 234% more volatile than the S&P 500.

Summary

Dialog Semiconductor beats EMCORE on 8 of the 14 factors compared between the two stocks.

EMCORE Company Profile

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in California. It offers broadband products comprising cable television; laser, receiver, and photodetector component products; radio frequency over glass FTTP products; satellite/microwave communications products; and wireless communications products. The company also provides chip devices products, including high-power gain chips, GPON fiber-to-the-premises, and data center chip products; and navigation systems products, such as fiber optic gyroscope products and inertial measurement units and navigation systems products. It sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.

Dialog Semiconductor Company Profile

Dialog Semiconductor Plc develops and distributes highly integrated, mixed signal integrated circuits (ICs) for personal, portable, hand-held devices, low energy short-range wireless, LED solid-state lighting, and automotive applications worldwide. It operates through four segments: Mobile Systems, Automotive & Industrial, Connectivity, and Power Conversion. The company offers power management integrated circuits (PMICs), sub-PMICs, charger ICs, automotive grade PMICs, and audio codecs; Bluetooth low energy ICs, voice over DECT, digital audio and audio codec ICs, and short-range wireless VoIP; AC/DC rapid charge adapters, converters, power adapters, embedded networking converters, and SSL LED and backlight drivers; and motor control ICS and ASIC controllers. It offers its products under the PrimAccurate, Rapid Charge, SmartBond, SmartDefender, SmartMirror, SmartPulse, SmarteXite, SmartXtend, and Ultrabook brands. Dialog Semiconductor Plc was founded in 1986 and is headquartered in Reading, the United Kingdom.

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