Semiconductor Manufacturing International (OTCMKTS:SMICY) versus Wolfspeed (NYSE:WOLF) Critical Review

Semiconductor Manufacturing International (OTCMKTS:SMICY) and Wolfspeed (NYSE:WOLF) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Profitability

This table compares Semiconductor Manufacturing International and Wolfspeed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semiconductor Manufacturing International	14.53%	4.00%	2.62%
Wolfspeed	-93.31%	-49.86%	-5.96%

Risk & Volatility

Semiconductor Manufacturing International has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Wolfspeed has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Semiconductor Manufacturing International and Wolfspeed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semiconductor Manufacturing International	0	0	0	0	0.00
Wolfspeed	2	10	4	0	2.13

Wolfspeed has a consensus price target of $17.21, indicating a potential upside of 144.52%. Given Wolfspeed’s stronger consensus rating and higher probable upside, analysts clearly believe Wolfspeed is more favorable than Semiconductor Manufacturing International.

Insider & Institutional Ownership

0.0% of Semiconductor Manufacturing International shares are owned by institutional investors. 0.8% of Wolfspeed shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Semiconductor Manufacturing International and Wolfspeed”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67
Wolfspeed	$804.50 million	1.12	-$864.20 million	($5.95)	-1.18

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

Summary

Semiconductor Manufacturing International beats Wolfspeed on 9 of the 14 factors compared between the two stocks.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

About Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.