Head-To-Head Comparison: Semtech (SMTC) versus Its Competitors

Semtech (NASDAQ:SMTC) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its rivals? We will compare Semtech to similar companies based on the strength of its valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Risk & Volatility

Semtech has a beta of 2.5, meaning that its stock price is 150% more volatile than the S&P 500. Comparatively, Semtech’s rivals have a beta of 2.79, meaning that their average stock price is 179% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Semtech and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semtech	0	3	15	1	2.89
Semtech Competitors	3487	12284	25657	988	2.57

Semtech presently has a consensus price target of $213.11, suggesting a potential upside of 68.44%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 39.63%. Given Semtech’s stronger consensus rating and higher probable upside, analysts plainly believe Semtech is more favorable than its rivals.

Institutional & Insider Ownership

54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 0.4% of Semtech shares are held by insiders. Comparatively, 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Semtech and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Semtech	$1.05 billion	-$40.38 million	83.79
Semtech Competitors	$39.41 billion	$2.48 billion	8.86

Semtech’s rivals have higher revenue and earnings than Semtech. Semtech is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Semtech and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semtech	13.11%	21.74%	8.98%
Semtech Competitors	-1,280.54%	-126.40%	-4.06%

Summary

Semtech beats its rivals on 8 of the 13 factors compared.

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.