Sigma designs (OTCMKTS: SIGM – Get a rating) and Silicon Motion Technology (NASDAQ: SIMO – Get a rating) are both IT and technology companies, but which stock is superior? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
This chart compares the net margins, return on equity, and return on assets of Sigma Designs and Silicon Motion Technology.
|Net margins||Return on equity||return on assets|
|Sigma designs||N / A||N / A||N / A|
|Silicon motion technology||21.68%||30.69%||22.75%|
Volatility and risk
Sigma Designs has a beta of 0.55, suggesting its stock price is 45% less volatile than the S&P 500. By comparison, Silicon Motion Technology has a beta of 1.2, suggesting its stock price is 20 % more volatile than the S&P 500.
Insider and Institutional Ownership
79.1% of Silicon Motion Technology shares are held by institutional investors. 4.5% of Sigma Designs shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.
Benefits and evaluation
This chart compares the revenue, earnings per share, and valuation of Sigma Designs and Silicon Motion Technology.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Sigma designs||$65.90 million||N / A||-$120.04 million||N / A||N / A|
|Silicon motion technology||$922.10 million||2.89||$199.95 million||$5.71||1:36 p.m.|
Silicon Motion Technology has higher revenue and profit than Sigma Designs.
This is a summary of recent valuations and price targets for Sigma Designs and Silicon Motion Technology, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Sigma designs||0||0||0||0||N / A|
|Silicon motion technology||0||1||6||0||2.86|
Silicon Motion Technology has a consensus price target of $103.43, indicating a potential upside of 35.57%. Given Silicon Motion Technology’s possible higher upside, analysts clearly believe that Silicon Motion Technology is more favorable than Sigma Designs.
Silicon Motion Technology beats Sigma Designs on 9 out of 10 factors compared between the two stocks.
About Sigma Designs (Get a rating)
Sigma Designs, Inc., a provider of integrated system-on-chip solutions, provides smart platforms for use in home entertainment and home and industrial control devices. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage and vehicles. It also offers legacy products; and software development kits and technical support services for hardware and software. The company markets and sells its products through a direct sales force, manufacturer representatives, distributors and resellers to end product manufacturers, original equipment manufacturers and original design manufacturers in Asia, North America, Europe and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.
About Silicon Motion Technology (Get a rating)
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops and markets NAND flash controllers for solid-state storage devices. It offers SSDs used in PCs and other devices, as well as eMMC and UFS mobile built-in storage used in smartphones and IoT devices. The company also provides enterprise-grade SSDs used in data centers; and specialty small form factor SSDs used in industrial, commercial and automotive applications. It markets its controllers under the SMI brand; enterprise SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the Ferri SSD and Ferri-eMMC brands. The company markets and sells its products through a direct sales force and independent electronics distributors to flash manufacturers, module manufacturers, hyperscalers and OEMs. It operates in Taiwan, the United States, South Korea, China, Malaysia, Singapore and internationally. Silicon Motion Technology Corporation was founded in 1995 and is based in Kowloon, Hong Kong.
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