Silicon Motion Technology (NASDAQ:SIMO – Get Free Report) and Agilysys (NASDAQ:AGYS – Get Free Report) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares Silicon Motion Technology and Agilysys’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Silicon Motion Technology | 10.36% | 10.14% | 7.76% |
| Agilysys | 4.85% | 11.13% | 6.79% |
Institutional & Insider Ownership
78.0% of Silicon Motion Technology shares are held by institutional investors. Comparatively, 88.0% of Agilysys shares are held by institutional investors. 5.3% of Silicon Motion Technology shares are held by company insiders. Comparatively, 8.6% of Agilysys 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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Silicon Motion Technology | 0 | 0 | 10 | 0 | 3.00 |
| Agilysys | 0 | 0 | 6 | 0 | 3.00 |
Silicon Motion Technology presently has a consensus target price of $87.7778, indicating a potential upside of 14.73%. Agilysys has a consensus target price of $120.8571, indicating a potential upside of 1.77%. Given Silicon Motion Technology’s higher possible upside, research analysts clearly believe Silicon Motion Technology is more favorable than Agilysys.
Risk & Volatility
Silicon Motion Technology has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Agilysys has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Valuation and Earnings
This table compares Silicon Motion Technology and Agilysys”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Silicon Motion Technology | $803.55 million | 3.24 | $89.25 million | $2.37 | 32.28 |
| Agilysys | $275.62 million | 12.08 | $23.23 million | $0.50 | 237.50 |
Silicon Motion Technology has higher revenue and earnings than Agilysys. Silicon Motion Technology is trading at a lower price-to-earnings ratio than Agilysys, indicating that it is currently the more affordable of the two stocks.
Summary
Silicon Motion Technology beats Agilysys on 8 of the 13 factors compared between the two stocks.
About Silicon Motion Technology
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. The company was founded in 1995 and is based in Hong Kong, Hong Kong.
About Agilysys
Agilysys, Inc. operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. It offers software solutions fully integrated with third party hardware and operating systems; cloud applications, support, and maintenance; subscription and maintenance; and professional services. The company’s hospitality software solutions include hospitality experience cloud offers solution ecosystems that combine core operational systems for property management, point-of-sale (POS), and inventory and procurement; and Hospitality Solution Studios. Its food and beverage ecosystem solutions comprise InfoGenesis POS; IG Kiosk; IG Flex; IG KDS; IG OnDemand; IG Fly; IG Quick Pay; IG Smart Menu; IG Digital Menu Board; IG PanOptic AI-powered self-checkout kiosk; Pay, a payment processing solution; eCash for cashless tender; gift card solution; and Analyze, a cloud-based data analytic platform. The company’s inventory and procurement ecosystem solutions include Eatec solution and Stratton Warren System; LMS, a on-premise or hosted, web and mobile-enabled PMS solution; Versa, a hospitality solution; and Stay, a cloud-native SaaS property management system. Its hospitality and leisure and experience enhancer solutions comprise Book, Express Kiosk and Express Mobile for check-in and check-out; Spa software; Golf; Sales & Catering; Service; Authorize; DataMagine; Reserve solution; Digital Marketing solution; Retail POS solution; Central Reservations; Loyalty & Promotions; Membership; Residence Management; and Guest App. It serves hotels, resorts and cruise lines, casinos, corporate food service management, restaurants, universities, stadiums, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1932 and is headquartered in Alpharetta, Georgia.
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