indie Semiconductor (NASDAQ:INDI – Get Free Report) and Silicon Laboratories (NASDAQ:SLAB – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Risk & Volatility
indie Semiconductor has a beta of 2.78, indicating that its share price is 178% more volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
Earnings and Valuation
This table compares indie Semiconductor and Silicon Laboratories”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| indie Semiconductor | $217.39 million | 3.53 | -$143.07 million | ($0.73) | -4.53 |
| Silicon Laboratories | $784.76 million | 9.32 | -$64.91 million | ($1.18) | -185.72 |
Silicon Laboratories has higher revenue and earnings than indie Semiconductor. Silicon Laboratories is trading at a lower price-to-earnings ratio than indie Semiconductor, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
67.7% of indie Semiconductor shares are held by institutional investors. 2.6% of indie Semiconductor shares are held by insiders. Comparatively, 1.6% of Silicon Laboratories shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for indie Semiconductor and Silicon Laboratories, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| indie Semiconductor | 1 | 2 | 1 | 0 | 2.00 |
| Silicon Laboratories | 2 | 5 | 0 | 0 | 1.71 |
indie Semiconductor currently has a consensus price target of $4.75, indicating a potential upside of 43.50%. Silicon Laboratories has a consensus price target of $218.00, indicating a potential downside of 0.52%. Given indie Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe indie Semiconductor is more favorable than Silicon Laboratories.
Profitability
This table compares indie Semiconductor and Silicon Laboratories’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| indie Semiconductor | -65.18% | -32.02% | -13.61% |
| Silicon Laboratories | -4.57% | -0.66% | -0.57% |
Summary
indie Semiconductor beats Silicon Laboratories on 8 of the 14 factors compared between the two stocks.
About indie Semiconductor
indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.
About Silicon Laboratories
Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, Taiwan, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the industrial Internet of Things (IoT), including industrial automation and control, smart buildings, access control, HVAC control, and industrial wearables and power tools; smart cities applications, such as smart metering, smart street lighting, renewable energy, electric vehicle supply equipment, and smart agriculture; commercial IoT applications, including smart lighting, asset tracking, electronic shelf labels, theft protection, and enterprise access points; smart home applications, comprising home automation/security systems, smart speakers, smart lighting, HVAC control, smart cameras, smart appliances, smart home sensing, smart locks, and window/blind controls; and connected health applications, including diabetes management, consumer health and fitness, elderly care, patient monitoring, and activity tracking; as well as in commercial building automation, consumer electronics, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.
Receive News & Ratings for indie Semiconductor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for indie Semiconductor and related companies with MarketBeat.com's FREE daily email newsletter.
