Analyzing STMicroelectronics (STM) and Its Peers
STMicroelectronics (NYSE: STM) is one of 99 publicly-traded companies in the “Semiconductors” industry, but how does it weigh in compared to its rivals? We will compare STMicroelectronics to similar businesses based on the strength of its valuation, earnings, institutional ownership, dividends, risk, profitability and analyst recommendations.
Valuation & Earnings
This table compares STMicroelectronics and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|STMicroelectronics||$6.97 billion||$165.00 million||31.91|
|STMicroelectronics Competitors||$4.38 billion||$573.56 million||40.52|
STMicroelectronics has higher revenue, but lower earnings than its rivals. STMicroelectronics is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares STMicroelectronics and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for STMicroelectronics and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
STMicroelectronics presently has a consensus target price of $20.17, indicating a potential downside of 7.07%. As a group, “Semiconductors” companies have a potential upside of 13.37%. Given STMicroelectronics’ rivals stronger consensus rating and higher possible upside, analysts clearly believe STMicroelectronics has less favorable growth aspects than its rivals.
Insider and Institutional Ownership
5.1% of STMicroelectronics shares are held by institutional investors. Comparatively, 66.3% of shares of all “Semiconductors” companies are held by institutional investors. 6.2% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. STMicroelectronics pays out 29.4% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.6% and pay out 58.1% of their earnings in the form of a dividend.
Volatility and Risk
STMicroelectronics has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, STMicroelectronics’ rivals have a beta of 1.03, indicating that their average share price is 3% more volatile than the S&P 500.
STMicroelectronics rivals beat STMicroelectronics on 9 of the 15 factors compared.
STMicroelectronics Company Profile
STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company’s segments include Automotive and Discrete Group (ADG), Analog and MEMS Group (AMG), Microcontrollers and Digital ICs Group (MDG), and Others. ADG comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. AMG includes low-power analog ICs for all markets; smart power products; Touch Screen Controllers; Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products. MDG comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories. The Others segment includes all the financial values related to the Imaging Product Division, Subsystems and other products.
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