Reviewing Silicon Laboratories (NASDAQ:SLAB) & Kyocera (OTCMKTS:KYOCY)

Kyocera (OTCMKTS:KYOCY) and Silicon Laboratories (NASDAQ:SLAB) 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, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Volatility and Risk

Kyocera has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares Kyocera and Silicon Laboratories”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyocera	$13.88 billion	1.14	$697.41 million	$0.14	80.18
Silicon Laboratories	$584.39 million	4.99	-$191.01 million	($5.94)	-15.12

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

Profitability

This table compares Kyocera and Silicon Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyocera	1.34%	0.82%	0.60%
Silicon Laboratories	-32.69%	-10.46%	-9.12%

Institutional & Insider Ownership

7.4% of Kyocera shares are owned by institutional investors. 1.6% of Silicon Laboratories shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Kyocera and Silicon Laboratories, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyocera	0	0	0	0	0.00
Silicon Laboratories	0	5	6	0	2.55

Silicon Laboratories has a consensus price target of $136.20, suggesting a potential upside of 51.64%. Given Silicon Laboratories’ stronger consensus rating and higher probable upside, analysts plainly believe Silicon Laboratories is more favorable than Kyocera.

Summary

Kyocera beats Silicon Laboratories on 8 of the 14 factors compared between the two stocks.

About Kyocera

Kyocera Corporation develops, produces, and distributes products based on fine ceramic technologies in Japan, rest of Asia, Europe, the United States, and internationally. It operates through Core Components Business, Electronic Components Business, and Solutions Business segments. The Core Components Business segment offers components, such as fine ceramic components for semiconductor processing equipment, automotive camera modules, and ceramic packages, as well as organic packages and boards to protect electronic components and ICs to industrial machinery, automotive-related, and the information and communication-related markets; optical components, and jewelry and applied ceramic related products; and medical devices comprising prosthetic joints and dental implants. The Electronic Components Business segment provides various electronic components and devices, including capacitors, crystal devices, connectors, and power semiconductor devices for diverse fields comprising information and communications, industrial equipment, automotive-related, and consumer markets, as well as sensors and control components. The Solutions Business segment offers cutting tools, as well as pneumatic and power tools for automotive-related and general industrial, and construction markets; printers for offices; and communication terminals, such as mobile phones, as well as information systems and telecommunication services. This segment also provides MFPs, commercial inkjet printers, communication modules, displays, and printing devices, as well as information systems and telecommunication, smart energy-related products and services, and solution services, such as document management system. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was incorporated in 1946 and is headquartered in Kyoto, Japan.

About Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, Taiwan, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the industrial Internet of Things (IoT), including industrial automation and control, smart buildings, access control, HVAC control, and industrial wearables and power tools; smart cities applications, such as smart metering, smart street lighting, renewable energy, electric vehicle supply equipment, and smart agriculture; commercial IoT applications, including smart lighting, asset tracking, electronic shelf labels, theft protection, and enterprise access points; smart home applications, comprising home automation/security systems, smart speakers, smart lighting, HVAC control, smart cameras, smart appliances, smart home sensing, smart locks, and window/blind controls; and connected health applications, including diabetes management, consumer health and fitness, elderly care, patient monitoring, and activity tracking; as well as in commercial building automation, consumer electronics, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.