Power Integrations (NASDAQ:POWI) & Semiconductor Manufacturing International (NASDAQ:SMICY) Financial Comparison

Power Integrations (NASDAQ:POWI) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Earnings and Valuation

This table compares Power Integrations and Semiconductor Manufacturing International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Power Integrations $420.67 million 8.38 $193.47 million $1.78 66.37
Semiconductor Manufacturing International $3.12 billion 5.67 $234.68 million $0.21 83.33

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

Profitability

This table compares Power Integrations and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Power Integrations 45.82% 9.81% 8.75%
Semiconductor Manufacturing International 7.64% 2.58% 1.54%

Insider and Institutional Ownership

98.2% of Power Integrations shares are owned by institutional investors. Comparatively, 0.1% of Semiconductor Manufacturing International shares are owned by institutional investors. 2.1% of Power Integrations shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Power Integrations and Semiconductor Manufacturing International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Integrations 1 1 2 0 2.25
Semiconductor Manufacturing International 1 1 0 1 2.33

Power Integrations presently has a consensus target price of $99.75, suggesting a potential downside of 15.56%. Given Power Integrations’ higher possible upside, analysts clearly believe Power Integrations is more favorable than Semiconductor Manufacturing International.

Volatility and Risk

Power Integrations has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Summary

Power Integrations beats Semiconductor Manufacturing International on 10 of the 15 factors compared between the two stocks.

About Power Integrations

Power Integrations, Inc. designs, develops, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company offers a range of alternating current to direct current (DC) power conversion products that address power supply ranging from less than 1 watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, and other consumer and industrial applications, as well as light-emitting diode lighting. It also provides high-voltage diodes; and high-voltage gate-driver products under the SCALE and SCALE-2 product-family names. In addition, the company offers motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, pumps, fans and blowers, dishwashers, and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct staff, as well as through a network of independent sales representatives and distributors. Power Integrations, Inc. was founded in 1988 and is headquartered in San Jose, California.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, assembly and final testing of integrated circuits; and sales of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in the United States, Europe, and the Asia Pacific. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

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