Taiwan Semiconductor Manufacturing (NYSE:TSM) and Summit Wireless Technologies (NASDAQ:WISA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
18.3% of Taiwan Semiconductor Manufacturing shares are held by institutional investors. Comparatively, 1.5% of Summit Wireless Technologies shares are held by institutional investors. 1.1% of Taiwan Semiconductor Manufacturing shares are held by company insiders. Comparatively, 1.7% of Summit Wireless Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Taiwan Semiconductor Manufacturing and Summit Wireless Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Taiwan Semiconductor Manufacturing | 37.94% | 28.73% | 20.16% |
| Summit Wireless Technologies | -791.48% | -407.13% | -181.74% |
Earnings and Valuation
This table compares Taiwan Semiconductor Manufacturing and Summit Wireless Technologies' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Taiwan Semiconductor Manufacturing | $34.63 billion | 17.36 | $11.83 billion | $3.39 | 34.19 |
| Summit Wireless Technologies | $1.67 million | 18.47 | $-12,040,000.00 | N/A | N/A |
Taiwan Semiconductor Manufacturing has higher revenue and earnings than Summit Wireless Technologies.
Analyst Ratings
This is a summary of recent ratings and target prices for Taiwan Semiconductor Manufacturing and Summit Wireless Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Taiwan Semiconductor Manufacturing | 2 | 1 | 6 | 0 | 2.44 |
| Summit Wireless Technologies | 0 | 0 | 2 | 0 | 3.00 |
Taiwan Semiconductor Manufacturing presently has a consensus price target of $106.75, indicating a potential downside of 7.93%. Summit Wireless Technologies has a consensus price target of $5.75, indicating a potential upside of 107.58%. Given Summit Wireless Technologies' stronger consensus rating and higher possible upside, analysts clearly believe Summit Wireless Technologies is more favorable than Taiwan Semiconductor Manufacturing.
Risk & Volatility
Taiwan Semiconductor Manufacturing has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Summit Wireless Technologies has a beta of -0.97, suggesting that its stock price is 197% less volatile than the S&P 500.
Summary
Taiwan Semiconductor Manufacturing beats Summit Wireless Technologies on 9 of the 13 factors compared between the two stocks.
