Reviewing Semtech (SMTC) and Its Competitors

Semtech (NASDAQ:SMTC) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its rivals? We will compare Semtech to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, profitability, earnings and valuation.

Earnings and Valuation

This table compares Semtech and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Semtech	$1.17 billion	-$40.38 million	84.36
Semtech Competitors	$8.13 billion	$2.48 billion	24.34

Semtech’s rivals have higher revenue and earnings than Semtech. Semtech is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Semtech has a beta of 2.41, indicating that its share price is 141% more volatile than the S&P 500. Comparatively, Semtech’s rivals have a beta of 3.09, indicating that their average share price is 209% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Semtech and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semtech	0	3	15	1	2.89
Semtech Competitors	3482	12281	25649	987	2.57

Semtech presently has a consensus target price of $213.11, suggesting a potential upside of 67.30%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 39.91%. Given Semtech’s stronger consensus rating and higher possible upside, equities analysts clearly believe Semtech is more favorable than its rivals.

Profitability

This table compares Semtech and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semtech	13.11%	21.74%	8.98%
Semtech Competitors	-1,280.57%	-126.39%	-4.01%

Institutional & Insider Ownership

54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 0.4% of Semtech shares are owned by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Semtech beats its rivals on 8 of the 13 factors compared.

Semtech Company Profile

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, it offers portfolio of IoT solutions, such as modules, gateways, routers, and connected services; and portfolio of connected services, including wireless connectivity and cloud-based services for industrial, medical and communications applications. The company serves original equipment manufacturers and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in Asia- Pacific, North America, and Europe. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.