Comparing Soitec (OTCMKTS:SLOIF) & GCT Semiconductor (NYSE:GCTS)

Soitec (OTCMKTS:SLOIF) and GCT Semiconductor (NYSE:GCTS) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of current ratings for Soitec and GCT Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Soitec	1	0	0	0	1.00
GCT Semiconductor	1	0	1	0	2.00

GCT Semiconductor has a consensus target price of $5.00, suggesting a potential upside of 232.23%. Given GCT Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe GCT Semiconductor is more favorable than Soitec.

Institutional & Insider Ownership

28.1% of GCT Semiconductor shares are held by institutional investors. 5.4% of GCT Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Soitec and GCT Semiconductor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Soitec	$937.30 million	1.48	$98.66 million	N/A	N/A
GCT Semiconductor	$9.13 million	9.21	-$12.38 million	($0.68)	-2.21

Soitec has higher revenue and earnings than GCT Semiconductor.

Volatility & Risk

Soitec has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Profitability

This table compares Soitec and GCT Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Soitec	N/A	N/A	N/A
GCT Semiconductor	-536.79%	N/A	-168.01%

Summary

GCT Semiconductor beats Soitec on 7 of the 11 factors compared between the two stocks.

About Soitec

Soitec SA designs and manufactures semiconductor materials worldwide. Its products are used to manufacture chips that are used in smart phones, tablets, computers, IT servers, and data centers, as well as electronic components in cars, connected devices, and industrial and medical equipment. It provides CONNECT Radio Frequency Silicon-on-Insulator (RF-SOI) for smartphone front-end modules; CONNECT Piezoelectric-on-Insulator RF filters for smartphone; and CONNECT RF gallium nitride for 5g infrastructure base stations and smartphones, as well as CONNECT Fully Depleted Silicon-On-Insulator (FD-SOI). The company also offers Auto Power-SOI product for automotive and industrial markets; Auto Smartsic for green mobility; and AUTO POWER-allium nitride for power efficiency, as well as AUTO FD-SOI for automotive radar and processors. In addition, it provides Smart photonics-SOI products for optical networking; Smart Imager-SOI products for next generation 3D image sensing; Smart FD-SOI for ultra low power, energy efficient, and body biasing; smart partially depleted (PD) -SOI for high-performance computing markets. Soitec SA was incorporated in 1992 and is headquartered in Bernin, France.

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.