Analyzing Lattice Semiconductor (NASDAQ:LSCC) and SiTime (NASDAQ:SITM)

Lattice Semiconductor (NASDAQ:LSCC) and SiTime (NASDAQ:SITM) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Valuation and Earnings

This table compares Lattice Semiconductor and SiTime’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lattice Semiconductor	$737.15 million	13.78	$259.06 million	$1.85	39.94
SiTime	$143.99 million	14.10	-$80.54 million	($3.63)	-24.46

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

Risk & Volatility

Lattice Semiconductor has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, SiTime has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Profitability

This table compares Lattice Semiconductor and SiTime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lattice Semiconductor	35.14%	36.07%	27.59%
SiTime	-55.93%	-10.21%	-9.09%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Lattice Semiconductor and SiTime, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lattice Semiconductor	0	3	8	0	2.73
SiTime	0	2	4	0	2.67

Lattice Semiconductor presently has a consensus price target of $87.00, indicating a potential upside of 17.76%. SiTime has a consensus price target of $142.00, indicating a potential upside of 59.93%. Given SiTime’s higher possible upside, analysts plainly believe SiTime is more favorable than Lattice Semiconductor.

Insider & Institutional Ownership

98.1% of Lattice Semiconductor shares are held by institutional investors. Comparatively, 84.3% of SiTime shares are held by institutional investors. 1.8% of Lattice Semiconductor shares are held by insiders. Comparatively, 2.3% of SiTime 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.

Summary

Lattice Semiconductor beats SiTime on 10 of the 14 factors compared between the two stocks.

About Lattice Semiconductor

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Lattice Certus and ECP, Mach, iCE, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial, and automotive markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.