Contrasting Sigma Designs (OTCMKTS:SIGM) & Silicon Motion Technology (NASDAQ:SIMO)

Sigma Designs (OTCMKTS:SIGMGet Rating) and Silicon Motion Technology (NASDAQ:SIMOGet Rating) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares Sigma Designs and Silicon Motion Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sigma Designs N/A N/A N/A
Silicon Motion Technology 21.68% 30.69% 22.75%

Volatility and Risk

Sigma Designs has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Silicon Motion Technology has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

79.1% of Silicon Motion Technology shares are held by institutional investors. 4.5% of Sigma Designs shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Sigma Designs and Silicon Motion Technology’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sigma Designs $65.90 million N/A -$120.04 million N/A N/A
Silicon Motion Technology $922.10 million 2.89 $199.95 million $5.71 13.36

Silicon Motion Technology has higher revenue and earnings than Sigma Designs.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sigma Designs and Silicon Motion Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sigma Designs 0 0 0 0 N/A
Silicon Motion Technology 0 1 6 0 2.86

Silicon Motion Technology has a consensus price target of $103.43, indicating a potential upside of 35.57%. Given Silicon Motion Technology’s higher possible upside, analysts plainly believe Silicon Motion Technology is more favorable than Sigma Designs.

Summary

Silicon Motion Technology beats Sigma Designs on 9 of the 10 factors compared between the two stocks.

About Sigma Designs (Get Rating)

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.

About Silicon Motion Technology (Get Rating)

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. It offers SSDs used in PCs and other devices, as well as eMMC and UFS mobile embedded storage used in smartphones and IOT devices. The company also provides enterprise-grade SSDs used in data centers; and small form-factor specialized SSDs used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the Ferri SSD and Ferri-eMMC brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, South Korea, China, Malaysia, Singapore, and internationally. Silicon Motion Technology Corporation was founded in 1995 and is based in Kowloon, Hong Kong.

Receive News & Ratings for Sigma Designs Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sigma Designs and related companies with MarketBeat.com's FREE daily email newsletter.