Silicon Motion Technology (SIMO) vs. Its Rivals Financial Survey

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

Dividends

Silicon Motion Technology pays an annual dividend of $1.99 per share and has a dividend yield of 1.1%. Silicon Motion Technology pays out 21.4% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 29.1% of their earnings in the form of a dividend. Silicon Motion Technology is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Silicon Motion Technology has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Silicon Motion Technology’s competitors have a beta of 2.80, indicating that their average stock price is 180% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Silicon Motion Technology and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicon Motion Technology	0	1	10	0	2.91
Silicon Motion Technology Competitors	3492	12318	25727	993	2.57

Silicon Motion Technology presently has a consensus price target of $331.25, suggesting a potential upside of 81.47%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 43.94%. Given Silicon Motion Technology’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Silicon Motion Technology is more favorable than its competitors.

Valuation & Earnings

This table compares Silicon Motion Technology and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Silicon Motion Technology	$885.63 million	$122.64 million	19.67
Silicon Motion Technology Competitors	$39.42 billion	$2.48 billion	12.48

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

Institutional & Insider Ownership

78.0% of Silicon Motion Technology shares are held by institutional investors. Comparatively, 54.6% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 5.3% of Silicon Motion Technology shares are held by insiders. Comparatively, 11.9% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Silicon Motion Technology and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silicon Motion Technology	19.36%	32.29%	18.34%
Silicon Motion Technology Competitors	-1,279.15%	-126.37%	-3.99%

Summary

Silicon Motion Technology beats its competitors on 10 of the 15 factors compared.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. The company was founded in 1995 and is based in Hong Kong, Hong Kong.