Financial Analysis: SuperCom (NASDAQ:SPCB) vs. Silicon Laboratories (SLAB)

SuperCom (NASDAQ:SPCB) and Silicon Laboratories (NASDAQ:SLAB) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SuperCom and Silicon Laboratories, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SuperCom 0 0 1 0 3.00
Silicon Laboratories 0 4 7 0 2.64

SuperCom presently has a consensus price target of $5.00, suggesting a potential upside of 194.12%. Silicon Laboratories has a consensus price target of $105.10, suggesting a potential upside of 24.57%. Given SuperCom’s stronger consensus rating and higher probable upside, equities analysts plainly believe SuperCom is more favorable than Silicon Laboratories.

Profitability

This table compares SuperCom and Silicon Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SuperCom -13.75% 4.20% 2.59%
Silicon Laboratories 7.45% 12.48% 7.98%

Institutional and Insider Ownership

22.4% of SuperCom shares are owned by institutional investors. Comparatively, 91.4% of Silicon Laboratories shares are owned by institutional investors. 2.0% of Silicon Laboratories shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares SuperCom and Silicon Laboratories’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SuperCom $33.26 million 0.76 -$6.66 million ($0.14) -12.14
Silicon Laboratories $768.87 million 4.73 $47.09 million $2.35 35.90

Silicon Laboratories has higher revenue and earnings than SuperCom. SuperCom is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

SuperCom has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Summary

Silicon Laboratories beats SuperCom on 12 of the 14 factors compared between the two stocks.

SuperCom Company Profile

SuperCom Ltd. provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide. The company offers MAGNA, a common platform for ID registries, e-passports, biometric visas, automated fingerprint identification systems, digitized driver's licenses, and electronic voter registration and election management. Its PureRF suite is a solution based on radio-frequency identification (RFID) tag technology to identify, locate, track, monitor, count, and protect people and objects. The company's PureRF suite comprises PureRF tags, hands-free long-range RFID asset and Vehicle tags, PureRF readers, PureRF activators, and PureRF initializers. It also provides house arrest monitoring systems, PureTag RF bracelets, PureCom RF base stations, GPS offender tracking systems, PureTrack smartphone device, PureBeacon, PureMonitor offender electronic monitoring software, inmate monitoring systems, DoorGuard tracking station, and personnel tags. In addition, the company offers domestic violence victim protection systems; SuperPay, a mobile payment hybrid suite; and PowaPOS, an integrated design incorporating retail peripherals. Further, it provides Safend's Encryption Suite that protects the organization's sensitive data; and designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events. The company serves healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, and building and access automation industries. SuperCom Ltd. sells its systems and products through local representatives, subsidiaries, and distribution channels, as well as independent representatives and resellers. The company was formerly known as Vuance Ltd. and changed its name to SuperCom Ltd. in January 2013. SuperCom Ltd. was founded in 1988 and is based in Herzliya, Israel.

Silicon Laboratories Company Profile

Silicon Laboratories Inc., a fabless semiconductor company, designs, develops, and markets mixed-signal integrated circuits (ICs) in the United States, China, and internationally. The company offers Internet of things products, such as 8-bit mixed-signal, 32-bit wireless, and ultra-low-power 32-bit microcontrollers; wireless connectivity devices, including multiprotocol wireless Gecko system-on-chip devices; real-time operating systems; sensor products comprising optical, relative humidity/temperature, and hall effect magnetic sensors. It also provides broadcast products, which include single-chip hybrid TV tuners and analog TV demodulators, as well as AM/FM, HD radio, and DAB/DAB+ receivers; and radio ICs. In addition, the company offers infrastructure products, such as timing devices; and multi-channel isolators, isolated drivers, isolated power converters, and mixed-signal devices. Further, it provides access products, including ProSLIC subscriber line interface circuits for VoIP; ISOmodem embedded modems; and Power over Ethernet power source equipment and powered device ICs. The company primarily markets its products to Internet of Things, Internet infrastructure, industrial automation, consumer, and automotive markets through direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

Receive News & Ratings for SuperCom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SuperCom and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply