Reviewing Microsemi (MSCC) and Sanmina (SANM)
Microsemi (NASDAQ: MSCC) and Sanmina (NASDAQ:SANM) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
This table compares Microsemi and Sanmina’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
97.7% of Microsemi shares are owned by institutional investors. Comparatively, 91.2% of Sanmina shares are owned by institutional investors. 0.6% of Microsemi shares are owned by company insiders. Comparatively, 5.1% of Sanmina 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.
Valuation & Earnings
This table compares Microsemi and Sanmina’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Microsemi||$1.81 billion||3.74||$176.30 million||$1.74||33.12|
|Sanmina||$6.87 billion||0.27||$138.83 million||($0.95)||-27.32|
Microsemi has higher earnings, but lower revenue than Sanmina. Sanmina is trading at a lower price-to-earnings ratio than Microsemi, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Microsemi has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Sanmina has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Microsemi and Sanmina, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Microsemi presently has a consensus price target of $66.60, indicating a potential upside of 15.56%. Sanmina has a consensus price target of $37.25, indicating a potential upside of 43.55%. Given Sanmina’s higher possible upside, analysts clearly believe Sanmina is more favorable than Microsemi.
Microsemi beats Sanmina on 11 of the 14 factors compared between the two stocks.
Microsemi Company Profile
Microsemi Corporation is a designer, manufacturer and marketer of analog and mixed-signal semiconductor solutions differentiated by power, security, reliability and performance. The Company offers a portfolio of semiconductor and system solutions for aerospace and defense, communications, data center and industrial markets. Its products include high-performance and radiation-hardened analog mixed-signal integrated circuits (ICs), field programmable gate arrays (FPGAs), system on chip solutions (SoCs) and application-specific integrated circuits (ASICs) and power management products. The Company’s marketed products include Switchtec PFX PCIe switch, Flashtec NVM Express (NVMe)2032 and NVMe2016 controllers, Flashtec NVM Express (NVMe)2108 eight channel and NVMe2104 four channel controllers, PDS-EM-8100 PoE 2.5 gigabits per second (Gbps) Multiplexer, Chip Scale Atomic Clock (CSAC) components and miTimePLL.
Sanmina Company Profile
Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.
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