STMicroelectronics (NYSE:STM) & VIA optronics (NYSE:VIAO) Head-To-Head Contrast

STMicroelectronics (NYSE:STMGet Rating) and VIA optronics (NYSE:VIAOGet Rating) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Institutional & Insider Ownership

10.7% of STMicroelectronics shares are owned by institutional investors. Comparatively, 20.9% of VIA optronics shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares STMicroelectronics and VIA optronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STMicroelectronics 15.67% 22.74% 13.14%
VIA optronics -5.73% -13.66% -6.74%

Analyst Recommendations

This is a breakdown of current ratings and target prices for STMicroelectronics and VIA optronics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STMicroelectronics 1 5 8 0 2.50
VIA optronics 0 0 1 0 3.00

STMicroelectronics presently has a consensus target price of $54.00, suggesting a potential upside of 41.03%. VIA optronics has a consensus target price of $14.00, suggesting a potential upside of 156.88%. Given VIA optronics’ stronger consensus rating and higher possible upside, analysts plainly believe VIA optronics is more favorable than STMicroelectronics.

Earnings and Valuation

This table compares STMicroelectronics and VIA optronics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
STMicroelectronics $12.76 billion 2.73 $2.00 billion $2.16 17.73
VIA optronics $174.30 million 0.71 -$4.13 million ($0.55) -9.91

STMicroelectronics has higher revenue and earnings than VIA optronics. VIA optronics is trading at a lower price-to-earnings ratio than STMicroelectronics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

STMicroelectronics has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, VIA optronics has a beta of -0.67, suggesting that its stock price is 167% less volatile than the S&P 500.

Summary

STMicroelectronics beats VIA optronics on 10 of the 13 factors compared between the two stocks.

About STMicroelectronics (Get Rating)

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs); and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; radio frequency (RF) and electrically erasable programmable read-only memories; and RF, digital, and mixed-signal ASICs. It also provides assembly and other services. The company sells its products through distributors and retailers, as well as through sales representatives. It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.

About VIA optronics (Get Rating)

VIA optronics AG, through its subsidiary, provides display solutions worldwide. It also develops, manufactures, and sells customized and application-specific metal mesh touch sensors and electrode base film materials for use in touch modules or other touch products. In addition, the company offers interactive display solutions, including curved display panels and solutions integrating multiple display touch assemblies; and optical bonding services, as well as licenses optical bonding process and sells related equipment. It serves automotive, consumer electronics, and industrial/specialized end markets. The company was founded in 2005 and is headquartered in Nuremberg, Germany. VIA optronics AG is a subsidiary of Integrated Micro-Electronics, Inc.

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