Comparing Lattice Semiconductor (NASDAQ:LSCC) & Finisar (NASDAQ:FNSR)

Lattice Semiconductor (NASDAQ:LSCC) and Finisar (NASDAQ:FNSR) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Lattice Semiconductor and Finisar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lattice Semiconductor 10.76% 20.85% 10.26%
Finisar -3.48% 4.62% 3.07%

Earnings and Valuation

This table compares Lattice Semiconductor and Finisar’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lattice Semiconductor $404.09 million 5.97 $43.49 million $0.45 39.89
Finisar $1.28 billion 2.23 -$53.22 million $0.59 40.29

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

Institutional and Insider Ownership

98.5% of Lattice Semiconductor shares are owned by institutional investors. Comparatively, 99.7% of Finisar shares are owned by institutional investors. 0.8% of Lattice Semiconductor shares are owned by company insiders. Comparatively, 1.1% of Finisar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Lattice Semiconductor has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Finisar has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Lattice Semiconductor and Finisar, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lattice Semiconductor 0 0 6 0 3.00
Finisar 0 3 0 0 2.00

Lattice Semiconductor currently has a consensus target price of $22.40, indicating a potential upside of 24.79%. Finisar has a consensus target price of $22.50, indicating a potential downside of 5.34%. Given Lattice Semiconductor’s stronger consensus rating and higher probable upside, research analysts clearly believe Lattice Semiconductor is more favorable than Finisar.

Summary

Lattice Semiconductor beats Finisar on 9 of the 14 factors compared between the two stocks.

About Lattice Semiconductor

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor technologies in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of five product family lines, including the ECP, MachXO, iCE40, CrossLink, and programmable mixed signal devices. It also provides video connectivity application specific standard products, such as port processors, port controllers, video processors, transmitters, receivers, bridges, and converters for use in mobile phones, UHD TVs, home theater systems, HDMI cable extenders, automotive infotainment, PCs, accessories, projectors, and monitors. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. Lattice Semiconductor Corporation sells its products directly to end customers; and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, mobile and consumer, and industrial and automotive end markets. Lattice Semiconductor Corporation was founded in 1983 and is headquartered in Hillsboro, Oregon.

About Finisar

Finisar Corporation provides components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics, and automotive companies in the United States, China, Malaysia, and internationally. The company's optical subsystems primarily include transmitters, receivers, transceivers, transponders, and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in wireline networks comprising switches, routers, and servers, as well as wireless networks, such as antennas and base stations. It also offers wavelength selective switches that are used to switch network traffic from one optical fiber to various other fibers without converting to an electronic signal. In addition, the company provides packaged laser, receivers, and photodetectors for data communication and telecommunication applications; and passive optical components for telecommunication applications. It markets its products through direct sales force, as well as distributors, manufacturers' representatives and resellers, and system integrators; and to the manufacturers of storage systems and telecommunication equipment, as well as to their contract manufacturers. Finisar Corporation was founded in 1987 and is headquartered in Sunnyvale, California.

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