Critical Contrast: Sigma Designs (OTCMKTS:SIGM) and SiTime (NASDAQ:SITM)

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

Analyst Ratings

This is a summary of recent ratings and price targets for SiTime and Sigma Designs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	1	0	4	0	2.60
Sigma Designs	0	0	0	0	0.00

SiTime presently has a consensus target price of $232.00, suggesting a potential upside of 38.94%. Given SiTime’s stronger consensus rating and higher possible upside, analysts clearly believe SiTime is more favorable than Sigma Designs.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiTime	-46.18%	-10.12%	-7.86%
Sigma Designs	N/A	N/A	N/A

Risk and Volatility

SiTime has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Sigma Designs has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$202.70 million	19.24	-$80.54 million	($4.05)	-41.23
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A

SiTime has higher revenue and earnings than Sigma Designs.

Institutional and Insider Ownership

84.3% of SiTime shares are owned by institutional investors. 2.3% of SiTime shares are owned by company insiders. Comparatively, 4.5% of Sigma Designs 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.

Summary

SiTime beats Sigma Designs on 7 of the 11 factors compared between the two stocks.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

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.