Financial Survey: ChipMOS Technologies (IMOS) and Semtech (SMTC)

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ChipMOS Technologies (NASDAQ:IMOS) and Semtech (NASDAQ:SMTC) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Profitability

This table compares ChipMOS Technologies and Semtech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ChipMOS Technologies 6.74% 7.05% 3.88%
Semtech 10.05% 13.94% 8.87%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ChipMOS Technologies and Semtech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ChipMOS Technologies 0 0 0 0 N/A
Semtech 0 3 8 0 2.73

Semtech has a consensus target price of $57.18, indicating a potential upside of 27.96%. Given Semtech’s higher possible upside, analysts clearly believe Semtech is more favorable than ChipMOS Technologies.

Insider and Institutional Ownership

6.2% of ChipMOS Technologies shares are held by institutional investors. Comparatively, 97.8% of Semtech shares are held by institutional investors. 2.0% of Semtech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares ChipMOS Technologies and Semtech’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ChipMOS Technologies $603.80 million 0.95 $43.31 million N/A N/A
Semtech $627.20 million 4.75 $63.06 million $1.33 33.60

Semtech has higher revenue and earnings than ChipMOS Technologies.

Dividends

ChipMOS Technologies pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. Semtech does not pay a dividend.

Volatility & Risk

ChipMOS Technologies has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Semtech has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Summary

Semtech beats ChipMOS Technologies on 12 of the 13 factors compared between the two stocks.

About ChipMOS Technologies

ChipMOS TECHNOLOGIES INC. researches, develops, manufactures, and sells high integration and high precision integrated circuits, and related assembly and testing services. It provides a range of back-end assembly and test services, including engineering test, wafer probing and final test of memory and logic/mixed-signal semiconductors, as well as leadframe-and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors; and gold bumping, reel to reel assembly, and test services for LCD and other flat-panel display driver semiconductors. The company's semiconductors are used in personal computers; graphics applications, such as game consoles; communications equipment; mobile products comprising cellular handsets, tablets, and consumer electronic products; and automotive/industry and display applications, such as flat-panel displays. It serves customers in Taiwan, Japan, Korea, Hong Kong, and the United States. The company was founded in 1997 and is headquartered in Hsinchu, Taiwan.

About Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company provides signal integrity products, including a portfolio of optical data communications and video transport products used in various enterprise computing, industrial, and communications 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. It also 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 wireless 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 used in industrial and consumer applications. In addition, the company provides power products consisting of switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging that control, alter, regulate, and condition the power within electronic systems. It serves original equipment manufacturers and their suppliers in the enterprise computing, communications, and consumer and industrial end-markets. The company sells its products directly, as well as through independent sales representative firms and independent distributors in the United States, Europe, and Asia. Semtech Corporation was founded in 1960 and is headquartered in Camarillo, California.

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