United Microelectronics (NYSE:UMC) versus Nano Labs (NASDAQ:NA) Critical Comparison

Nano Labs (NASDAQ:NA) and United Microelectronics (NYSE:UMC) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

50.7% of Nano Labs shares are owned by institutional investors. Comparatively, 5.1% of United Microelectronics shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Nano Labs and United Microelectronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano Labs	0	0	0	0	N/A
United Microelectronics	0	2	1	0	2.33

United Microelectronics has a consensus price target of $8.90, suggesting a potential upside of 12.09%. Given United Microelectronics’ higher possible upside, analysts plainly believe United Microelectronics is more favorable than Nano Labs.

Profitability

This table compares Nano Labs and United Microelectronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nano Labs	N/A	N/A	N/A
United Microelectronics	24.79%	15.97%	9.90%

Risk and Volatility

Nano Labs has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares Nano Labs and United Microelectronics’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano Labs	$11.06 million	1.46	-$35.70 million	N/A	N/A
United Microelectronics	$7.25 billion	2.74	$1.95 billion	$0.70	11.34

United Microelectronics has higher revenue and earnings than Nano Labs.

Summary

United Microelectronics beats Nano Labs on 9 of the 11 factors compared between the two stocks.

About Nano Labs

Nano Labs Ltd operates as a fabless integrated circuit design company and product solution provider in the People's Republic of China and internationally. It develops high throughput computing and high-performance computing chips. The company also offers distributed computing and storage solutions, smart network interface cards, and vision computing chips, as well as distributed rendering technology. In addition, it engages in the research and development of software. Its customers include enterprises and individual buyers. The company was founded in 2019 and is headquartered in Hangzhou, the People's Republic of China.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. The company was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.