Viavi Solutions (NASDAQ:VIAV) versus Semiconductor Manufacturing International (OTCMKTS:SMICY) Financial Comparison

Viavi Solutions (NASDAQ:VIAV) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Viavi Solutions has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares Viavi Solutions and Semiconductor Manufacturing International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viavi Solutions $1.20 billion 2.99 $46.10 million $0.63 24.90
Semiconductor Manufacturing International $3.12 billion 5.18 $234.68 million $0.21 66.67

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

Insider and Institutional Ownership

94.6% of Viavi Solutions shares are held by institutional investors. Comparatively, 0.0% of Semiconductor Manufacturing International shares are held by institutional investors. 1.1% of Viavi Solutions 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.

Profitability

This table compares Viavi Solutions and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viavi Solutions 3.85% 19.07% 7.85%
Semiconductor Manufacturing International 14.53% 4.00% 2.62%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Viavi Solutions and Semiconductor Manufacturing International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viavi Solutions 0 2 4 0 2.67
Semiconductor Manufacturing International 0 0 2 0 3.00

Viavi Solutions currently has a consensus target price of $19.83, indicating a potential upside of 26.41%. Semiconductor Manufacturing International has a consensus target price of $23.04, indicating a potential upside of 64.57%. Given Semiconductor Manufacturing International’s stronger consensus rating and higher probable upside, analysts plainly believe Semiconductor Manufacturing International is more favorable than Viavi Solutions.

Summary

Viavi Solutions beats Semiconductor Manufacturing International on 8 of the 14 factors compared between the two stocks.

About Viavi Solutions

Viavi Solutions, Inc. engages in the provision of network test, monitoring, and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. It operates through the following segments: Network Enablement, Service Enablement, and Optical Security and Performance. The Network Enablement segment offers integrated portfolio of testing solutions that access the network to perform build-out and maintenance tasks. The Service Enablement segment covers solutions and services primarily for communication service providers, and enterprises that deliver and/or operate broadband and IP networks (fixed and mobile) supporting voice, video, and data services as well as a wide range of applications. The Optical Security and Performance segment leverages its core optical coating technologies and volume manufacturing capability to design, manufacture, and sell products targeting anti-counterfeiting, consumer and industrial, government, healthcare, and other markets. The company was founded in 1979 and is headquartered in San Jose, CA.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

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