indie Semiconductor (NASDAQ:INDI) and Semtech (NASDAQ:SMTC) Head to Head Analysis

Semtech (NASDAQ:SMTC) and indie Semiconductor (NASDAQ:INDI) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Semtech and indie Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semtech	0	2	11	0	2.85
indie Semiconductor	0	1	5	0	2.83

Semtech presently has a consensus price target of $57.33, indicating a potential upside of 67.99%. indie Semiconductor has a consensus price target of $7.50, indicating a potential upside of 271.29%. Given indie Semiconductor’s higher probable upside, analysts clearly believe indie Semiconductor is more favorable than Semtech.

Profitability

This table compares Semtech and indie Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semtech	-99.08%	N/A	-2.28%
indie Semiconductor	-61.59%	-28.08%	-17.01%

Insider and Institutional Ownership

67.7% of indie Semiconductor shares are held by institutional investors. 0.6% of Semtech shares are held by company insiders. Comparatively, 8.2% of indie Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Semtech and indie Semiconductor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semtech	$909.29 million	3.25	-$1.09 billion	($2.64)	-12.93
indie Semiconductor	$216.68 million	1.94	-$117.62 million	($0.76)	-2.66

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

Volatility & Risk

Semtech has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, indie Semiconductor has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.

Summary

Semtech beats indie Semiconductor on 8 of the 14 factors compared between the two stocks.

About Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, it offers portfolio of IoT solutions, such as modules, gateways, routers, and connected services; and portfolio of connected services, including wireless connectivity and cloud-based services for industrial, medical and communications applications. The company serves original equipment manufacturers and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in Asia- Pacific, North America, and Europe. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.