Contrasting Semiconductor Manufacturing Int’l (SMI) & Analog Devices (ADI)

Analog Devices (NASDAQ:ADI) and Semiconductor Manufacturing Int’l (NYSE:SMI) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Dividends

Analog Devices pays an annual dividend of $2.16 per share and has a dividend yield of 1.9%. Semiconductor Manufacturing Int’l does not pay a dividend. Analog Devices pays out 36.4% of its earnings in the form of a dividend. Analog Devices has raised its dividend for 9 consecutive years.

Earnings and Valuation

This table compares Analog Devices and Semiconductor Manufacturing Int’l’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Analog Devices $6.20 billion 6.82 $1.50 billion $5.94 19.32
Semiconductor Manufacturing Int’l $3.36 billion 1.50 $134.05 million N/A N/A

Analog Devices has higher revenue and earnings than Semiconductor Manufacturing Int’l.

Insider and Institutional Ownership

91.3% of Analog Devices shares are held by institutional investors. Comparatively, 0.5% of Semiconductor Manufacturing Int’l shares are held by institutional investors. 0.5% of Analog Devices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Analog Devices has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing Int’l has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Analog Devices and Semiconductor Manufacturing Int’l’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Analog Devices 25.42% 19.99% 10.52%
Semiconductor Manufacturing Int’l 3.19% 1.37% 0.81%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Analog Devices and Semiconductor Manufacturing Int’l, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Analog Devices 1 10 10 0 2.43
Semiconductor Manufacturing Int’l 2 2 0 0 1.50

Analog Devices presently has a consensus price target of $102.65, indicating a potential downside of 10.57%. Given Analog Devices’ stronger consensus rating and higher probable upside, research analysts clearly believe Analog Devices is more favorable than Semiconductor Manufacturing Int’l.

Summary

Analog Devices beats Semiconductor Manufacturing Int’l on 14 of the 16 factors compared between the two stocks.

About Analog Devices

Analog Devices, Inc. engages in the design, development, manufacture, and marketing of integrated circuits (ICs). Its products include industrial process control systems, medical imaging equipment, factory process automation systems, patient vital signs monitoring devices, instrumentation and measurement systems, wireless infrastructure equipment, energy management systems, networking equipment, aerospace and defense electronics, optical systems, automobiles, and portable consumer devices. The company was founded by Raymond P. Stata and Matthew Lorber in 1965 and is headquartered in Norwood, MA.

About Semiconductor Manufacturing Int’l

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. The company offers various types of semiconductors, including logic, mixed-signal and radio frequency, power IC, microprocessor, memory related, optoelectronics, other sensors, discrete, and others. It also provides integrated solutions, such as design support services; libraries and intellectual property services; mask-making services; and wafer probing, bumping, assembling, and testing services. In addition, the company designs and manufactures semiconductor masks and solar cells related semiconductor products; and offers marketing related services. It operates in the United States, Europe, and the Asia Pacific. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

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