Critical Survey: GSI Technology (GSIT) & Its Competitors

GSI Technology (NASDAQ:GSIT) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it contrast to its peers? We will compare GSI Technology to similar companies based on the strength of its earnings, analyst recommendations, risk, institutional ownership, dividends, profitability and valuation.

Analyst Recommendations

This is a breakdown of current recommendations for GSI Technology and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSI Technology	1	0	1	0	2.00
GSI Technology Competitors	3487	12297	25678	990	2.57

GSI Technology presently has a consensus target price of $9.00, indicating a potential upside of 126.99%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 39.40%. Given GSI Technology’s higher probable upside, research analysts plainly believe GSI Technology is more favorable than its peers.

Profitability

This table compares GSI Technology and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GSI Technology	-62.90%	-21.39%	-17.73%
GSI Technology Competitors	-1,280.74%	-126.55%	-4.15%

Insider & Institutional Ownership

33.2% of GSI Technology shares are owned by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 16.6% of GSI Technology 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, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares GSI Technology and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GSI Technology	$25.15 million	-$13.25 million	-8.62
GSI Technology Competitors	$1,259.14 billion	$2.48 billion	8.79

GSI Technology’s peers have higher revenue and earnings than GSI Technology. GSI Technology is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

GSI Technology has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, GSI Technology’s peers have a beta of 3.10, indicating that their average share price is 210% more volatile than the S&P 500.

Summary

GSI Technology peers beat GSI Technology on 9 of the 13 factors compared.

GSI Technology Company Profile

GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.