Analyzing Sigma Designs (OTCMKTS:SIGM) and Onsemi (NASDAQ:ON)

Sigma Designs (OTCMKTS:SIGM) and Onsemi (NASDAQ:ON) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Valuation & Earnings

This table compares Sigma Designs and Onsemi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A
Onsemi	$8.25 billion	3.73	$2.18 billion	$4.03	17.96

Onsemi has higher revenue and earnings than Sigma Designs.

Institutional & Insider Ownership

97.7% of Onsemi shares are held by institutional investors. 4.5% of Sigma Designs shares are held by insiders. Comparatively, 0.3% of Onsemi shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Sigma Designs has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Onsemi has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.

Profitability

This table compares Sigma Designs and Onsemi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sigma Designs	N/A	N/A	N/A
Onsemi	23.80%	22.38%	13.57%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sigma Designs and Onsemi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sigma Designs	0	0	0	0	0.00
Onsemi	2	5	16	0	2.61

Onsemi has a consensus price target of $85.87, suggesting a potential upside of 18.62%. Given Onsemi’s stronger consensus rating and higher possible upside, analysts plainly believe Onsemi is more favorable than Sigma Designs.

Summary

Onsemi beats Sigma Designs on 10 of the 11 factors compared between the two stocks.

About Sigma Designs

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.

About Onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment is involved in the designing and developing of analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment is focused on the designing and developing of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, inclu