Intel (NASDAQ:INTC) & Lattice Semiconductor (NASDAQ:LSCC) Critical Analysis

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

Volatility and Risk

Intel has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500. Comparatively, Lattice Semiconductor has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Earnings and Valuation

This table compares Intel and Lattice Semiconductor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intel	$52.85 billion	10.12	-$267.00 million	($2.11)	-50.28
Lattice Semiconductor	$523.26 million	28.91	$3.08 million	$0.26	424.66

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Intel and Lattice Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intel	3	27	20	1	2.37
Lattice Semiconductor	0	2	11	1	2.93

Intel presently has a consensus target price of $108.49, suggesting a potential upside of 2.26%. Lattice Semiconductor has a consensus target price of $147.46, suggesting a potential upside of 33.56%. Given Lattice Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe Lattice Semiconductor is more favorable than Intel.

Insider and Institutional Ownership

64.5% of Intel shares are owned by institutional investors. Comparatively, 98.1% of Lattice Semiconductor shares are owned by institutional investors. 0.1% of Intel shares are owned by company insiders. Comparatively, 0.6% of Lattice Semiconductor 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intel	-19.79%	2.62%	1.50%
Lattice Semiconductor	5.58%	10.92%	8.94%

Summary

Lattice Semiconductor beats Intel on 11 of the 14 factors compared between the two stocks.

About Intel

Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services segments. The company's products portfolio comprises central processing units and chipsets, system-on-chips (SoCs), and multichip packages; mobile and desktop processors; hardware products comprising graphics processing units (GPUs), domain-specific accelerators, and field programmable gate arrays (FPGAs); and memory and storage, connectivity and networking, and other semiconductor products. It also offers silicon devices and software products; and optimization solutions for workloads, such as AI, cryptography, security, storage, networking, and leverages various features supporting diverse compute environments. In addition, the company develops and deploys advanced driver assistance systems (ADAS), and autonomous driving technologies and solutions; and provides advanced process technologies backed by an ecosystem of IP, EDA, and design services, as well as systems of chips, including advanced packaging technologies, software and accelerate bring-up, and integration of chips and driving standards. Further, it delivers and deploys intelligent edge platforms that allow developers to achieve agility and drive automation using AI for efficient operations with data integrity, as well as provides hardware and software platforms, tools, and ecosystem partnerships for digital transformation from the cloud to edge. The company serves original equipment manufacturers, original design manufacturers, cloud service providers, and other manufacturers and service providers. It has a strategic agreement with Synopsys, Inc. to develop EDA and IP solutions; and ARM that enables chip designers to build optimized compute SoCs on the Intel 18A process. Intel Corporation was incorporated in 1968 and is headquartered in Santa Clara, California.

About Lattice Semiconductor

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Lattice Certus and ECP, Mach, iCE, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to 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, consumer, and industrial, and automotive markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.