Cabot Microelectronics (NASDAQ:CCMP) vs. GSI Technology (NASDAQ:GSIT) Critical Review
Cabot Microelectronics (NASDAQ:CCMP) and GSI Technology (NASDAQ:GSIT) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
Cabot Microelectronics pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. GSI Technology does not pay a dividend. Cabot Microelectronics pays out 32.2% of its earnings in the form of a dividend. Cabot Microelectronics has raised its dividend for 2 consecutive years.
This table compares Cabot Microelectronics and GSI Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Cabot Microelectronics and GSI Technology, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cabot Microelectronics presently has a consensus target price of $126.50, suggesting a potential upside of 16.46%. Given Cabot Microelectronics’ stronger consensus rating and higher possible upside, analysts plainly believe Cabot Microelectronics is more favorable than GSI Technology.
Valuation and Earnings
This table compares Cabot Microelectronics and GSI Technology’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cabot Microelectronics||$590.12 million||5.34||$110.04 million||$5.22||20.78|
|GSI Technology||$51.49 million||3.58||$160,000.00||N/A||N/A|
Cabot Microelectronics has higher revenue and earnings than GSI Technology.
Insider and Institutional Ownership
99.1% of Cabot Microelectronics shares are held by institutional investors. Comparatively, 30.0% of GSI Technology shares are held by institutional investors. 2.2% of Cabot Microelectronics shares are held by company insiders. Comparatively, 36.3% of GSI Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Cabot Microelectronics has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, GSI Technology has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
Cabot Microelectronics beats GSI Technology on 13 of the 15 factors compared between the two stocks.
Cabot Microelectronics Company Profile
Cabot Microelectronics Corp. engages in the development, manufacture, and sale of chemical mechanical planarization consumables products. The firm offers chemical mechanical planarization slurries for polishing many of the conducting, insulating and isolating materials used in integrated circuit devices, and for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells chemical mechanical planarization polishing pads, which are used in conjunction with slurries in the chemical mechanical planarization process. The company was founded by William P. Noglows in October 1999 and is headquartered in Aurora, IL.
GSI Technology Company Profile
GSI Technology, Inc., a fabless semiconductor company, designs, develops, and markets memory products primarily for the networking and telecommunications markets in the United States, China, Singapore, the Netherlands, and internationally. It offers synchronous static random access memory (SRAM) products, such as BurstRAMs for microprocessor cache applications; No Bus Turnaround SRAMs to address the needs of moderate performance networking applications; SigmaQuad and SigmaDDR products that are double data rate and quad data rate synchronous SRAMs; and radiation-hardened SRAMs for aerospace and military applications, such as networking satellites and missiles. The company also provides low latency dynamic random access memory products. Its products are incorporated in a range of networking and telecommunications equipment, including core routers, multi-service access routers, universal gateways, enterprise edge routers, service provider edge routers, optical edge routers, fast Ethernet switches, wireless base stations, and network access equipment. The company markets its products through a network of independent sales representatives and distributors to original equipment manufacturers, as well as to military, industrial, test and measurement equipment, automotive, and medical markets. GSI Technology, Inc. was founded in 1995 and is headquartered in Sunnyvale, California.
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