United Microelectronics (NYSE:UMC) and NXP Semiconductors (NASDAQ:NXPI) are both large-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Dividends
United Microelectronics pays an annual dividend of $0.10 per share and has a dividend yield of 1.1%. NXP Semiconductors pays an annual dividend of $2.25 per share and has a dividend yield of 1.1%. NXP Semiconductors pays out 28.0% of its earnings in the form of a dividend. NXP Semiconductors has raised its dividend for 1 consecutive years. NXP Semiconductors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
4.0% of United Microelectronics shares are owned by institutional investors. Comparatively, 89.0% of NXP Semiconductors shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by company insiders. Comparatively, 0.6% of NXP Semiconductors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares United Microelectronics and NXP Semiconductors' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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United Microelectronics | 12.68% | 10.44% | 6.02% |
NXP Semiconductors | -1.70% | 17.16% | 7.78% |
Analyst Ratings
This is a breakdown of current ratings and price targets for United Microelectronics and NXP Semiconductors, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
United Microelectronics | 0 | 2 | 4 | 0 | 2.67 |
NXP Semiconductors | 1 | 6 | 14 | 1 | 2.68 |
United Microelectronics currently has a consensus target price of $11.55, indicating a potential upside of 22.87%. NXP Semiconductors has a consensus target price of $186.2174, indicating a potential downside of 10.98%. Given United Microelectronics' higher possible upside, research analysts plainly believe United Microelectronics is more favorable than NXP Semiconductors.
Volatility and Risk
United Microelectronics has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Valuation & Earnings
This table compares United Microelectronics and NXP Semiconductors' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
United Microelectronics | $4.93 billion | 4.47 | $272.65 million | N/A | N/A |
NXP Semiconductors | $8.88 billion | 6.50 | $243 million | $8.04 | 26.02 |
United Microelectronics has higher earnings, but lower revenue than NXP Semiconductors.
Summary
NXP Semiconductors beats United Microelectronics on 11 of the 17 factors compared between the two stocks.