Reviewing Freescale Semiconductor (FSL) & Jabil (JBL)

Freescale Semiconductor (NYSE: FSL) and Jabil (NYSE:JBL) are both semiconductors – nec companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Freescale Semiconductor and Jabil, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freescale Semiconductor 0 0 0 0 N/A
Jabil 2 5 4 0 2.18

Jabil has a consensus target price of $31.78, indicating a potential upside of 23.84%. Given Jabil’s higher probable upside, analysts clearly believe Jabil is more favorable than Freescale Semiconductor.

Earnings & Valuation

This table compares Freescale Semiconductor and Jabil’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freescale Semiconductor N/A N/A N/A $1.06 34.50
Jabil $19.06 billion 0.24 $129.09 million $0.58 44.36

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

Dividends

Jabil pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Freescale Semiconductor does not pay a dividend. Jabil pays out 55.2% of its earnings in the form of a dividend.

Institutional & Insider Ownership

97.9% of Jabil shares are owned by institutional investors. 2.6% of Jabil shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Freescale Semiconductor and Jabil’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freescale Semiconductor 7.14% N/A 10.15%
Jabil 0.54% 12.95% 2.86%

Summary

Jabil beats Freescale Semiconductor on 8 of the 12 factors compared between the two stocks.

About Freescale Semiconductor

Freescale Semiconductor, Ltd. is a United States-based company, which provides microcontrollers and digital networking processors. The Company offers its product under various categories, including advanced reduced instruction set computer (RISC) machines (ARM) processors, such as QorIQ multicore processors; Power Architecture processors, such as integrated host processors; more processors, such as crypto coprocessors; analog and power management, such as drivers and switches; radio frequency (RF), such as digital front end processors; sensors, such as intelligent sensors and sensor hubs; wireless connectivity, and programs and technologies. The Company offers various applications, including basic rear view camera, EtherCAT, portable navigation devices, access and remote control, human machine interface (HMI), blood glucose monitors, and gas and water meter. Its software’s and tools include run-time software, software development tools and hardware development tools, among others.

About Jabil

Jabil Inc., formerly Jabil Circuit, Inc., provides electronic manufacturing services and solutions throughout the world. The Company operates in two segments, which include Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). The Company’s EMS segment is focused on leveraging information technology (IT), supply chain design and engineering, technologies centered on core electronics, sharing of its large scale manufacturing infrastructure and the ability to serve a range of markets. Its DMS segment is focused on providing engineering solutions and a focus on material sciences and technologies. It provides electronic design, production and product management services to companies in the automotive, capital equipment, consumer lifestyles and wearable technologies, computing and storage, defense and aerospace, digital home, emerging growth, healthcare, industrial and energy, mobility, packaging, point of sale and printing industries.

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