Alpha and Omega Semiconductor (NASDAQ:AOSL – Get Free Report) and United Microelectronics (NYSE:UMC – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Earnings & Valuation
This table compares Alpha and Omega Semiconductor and United Microelectronics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alpha and Omega Semiconductor | $685.88 million | 1.35 | -$96.98 million | ($3.47) | -8.99 |
| United Microelectronics | $7.57 billion | 3.30 | $1.34 billion | $0.54 | 18.42 |
Analyst Recommendations
This is a summary of current recommendations and price targets for Alpha and Omega Semiconductor and United Microelectronics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alpha and Omega Semiconductor | 1 | 3 | 1 | 0 | 2.00 |
| United Microelectronics | 3 | 2 | 0 | 0 | 1.40 |
Alpha and Omega Semiconductor currently has a consensus price target of $24.00, indicating a potential downside of 23.10%. United Microelectronics has a consensus price target of $8.60, indicating a potential downside of 13.52%. Given United Microelectronics’ higher probable upside, analysts plainly believe United Microelectronics is more favorable than Alpha and Omega Semiconductor.
Institutional and Insider Ownership
79.0% of Alpha and Omega Semiconductor shares are held by institutional investors. Comparatively, 5.1% of United Microelectronics shares are held by institutional investors. 16.7% of Alpha and Omega Semiconductor shares are held by insiders. Comparatively, 8.0% of United Microelectronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Alpha and Omega Semiconductor has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Profitability
This table compares Alpha and Omega Semiconductor and United Microelectronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alpha and Omega Semiconductor | -15.06% | -3.78% | -3.03% |
| United Microelectronics | 17.60% | 11.45% | 7.45% |
Summary
United Microelectronics beats Alpha and Omega Semiconductor on 9 of the 14 factors compared between the two stocks.
About Alpha and Omega Semiconductor
Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.
About United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
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