Comparing Silvaco Group (NASDAQ:SVCO) & GCT Semiconductor (NYSE:GCTS)

Silvaco Group (NASDAQ:SVCO) and GCT Semiconductor (NYSE:GCTS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Silvaco Group and GCT Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silvaco Group	1	0	3	1	2.80
GCT Semiconductor	2	0	2	0	2.00

Silvaco Group presently has a consensus price target of $9.33, indicating a potential upside of 12.18%. GCT Semiconductor has a consensus price target of $3.50, indicating a potential upside of 166.16%. Given GCT Semiconductor’s higher possible upside, analysts clearly believe GCT Semiconductor is more favorable than Silvaco Group.

Risk and Volatility

Silvaco Group has a beta of -0.74, suggesting that its stock price is 174% less volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Insider and Institutional Ownership

28.1% of GCT Semiconductor shares are owned by institutional investors. 47.9% of Silvaco Group shares are owned by insiders. Comparatively, 5.4% of GCT Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Silvaco Group and GCT Semiconductor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silvaco Group	$63.06 million	4.15	-$41.21 million	($1.41)	-5.90
GCT Semiconductor	$2.87 million	33.20	-$43.37 million	($0.81)	-1.62

Silvaco Group has higher revenue and earnings than GCT Semiconductor. Silvaco Group is trading at a lower price-to-earnings ratio than GCT Semiconductor, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Silvaco Group	-65.34%	-23.01%	-14.07%
GCT Semiconductor	-1,513.33%	N/A	-231.27%

Summary

Silvaco Group beats GCT Semiconductor on 8 of the 15 factors compared between the two stocks.

About Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.

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.