SiTime (NASDAQ:SITM) and Silicon Laboratories (NASDAQ:SLAB) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Risk & Volatility
SiTime has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.
Earnings & Valuation
This table compares SiTime and Silicon Laboratories' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
SiTime | $84.07 million | 20.28 | $-10,804,500.00 | ($0.63) | -157.76 |
Silicon Laboratories | $837.55 million | 7.89 | $19.26 million | $2.15 | 69.47 |
Silicon Laboratories has higher revenue and earnings than SiTime. SiTime is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
56.1% of SiTime shares are owned by institutional investors. Comparatively, 93.0% of Silicon Laboratories shares are owned by institutional investors. 0.8% of SiTime shares are owned by company insiders. Comparatively, 2.3% of Silicon Laboratories shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares SiTime and Silicon Laboratories' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
SiTime | N/A | N/A | N/A |
Silicon Laboratories | 1.54% | 7.34% | 4.44% |
Analyst Ratings
This is a summary of recent ratings for SiTime and Silicon Laboratories, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
SiTime | 0 | 0 | 6 | 0 | 3.00 |
Silicon Laboratories | 0 | 4 | 7 | 0 | 2.64 |
SiTime currently has a consensus target price of $134.40, indicating a potential upside of 35.22%. Silicon Laboratories has a consensus target price of $158.20, indicating a potential upside of 5.92%. Given SiTime's stronger consensus rating and higher probable upside, research analysts plainly believe SiTime is more favorable than Silicon Laboratories.
Summary
Silicon Laboratories beats SiTime on 11 of the 14 factors compared between the two stocks.