Silicon Laboratories (NASDAQ:SLAB – Get Free Report) and EMCORE (NASDAQ:EMKR – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Silicon Laboratories and EMCORE, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Silicon Laboratories | 0 | 5 | 6 | 0 | 2.55 |
| EMCORE | 0 | 3 | 0 | 0 | 2.00 |
Silicon Laboratories presently has a consensus target price of $136.20, indicating a potential upside of 51.33%. EMCORE has a consensus target price of $3.00, indicating a potential downside of 3.23%. Given Silicon Laboratories’ stronger consensus rating and higher probable upside, analysts clearly believe Silicon Laboratories is more favorable than EMCORE.
Risk & Volatility
Insider and Institutional Ownership
65.7% of EMCORE shares are held by institutional investors. 1.6% of Silicon Laboratories shares are held by company insiders. Comparatively, 0.9% of EMCORE shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Silicon Laboratories and EMCORE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Silicon Laboratories | -32.69% | -10.46% | -9.12% |
| EMCORE | -42.00% | -24.27% | -12.59% |
Earnings and Valuation
This table compares Silicon Laboratories and EMCORE”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Silicon Laboratories | $584.39 million | 5.00 | -$191.01 million | ($5.94) | -15.15 |
| EMCORE | $81.08 million | 0.35 | -$31.24 million | ($2.92) | -1.06 |
EMCORE has lower revenue, but higher earnings than Silicon Laboratories. Silicon Laboratories is trading at a lower price-to-earnings ratio than EMCORE, indicating that it is currently the more affordable of the two stocks.
Summary
Silicon Laboratories beats EMCORE on 9 of the 14 factors compared between the two stocks.
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.
About EMCORE
EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.
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