Critical comparison between Silicon Laboratories (NASDAQ:SLAB) and ON Semiconductor (NASDAQ:ON)
ON Semiconductor (NASDAQ: ON – Get a rating) and Silicon Laboratories (NASDAQ: SLAB – Get a rating) are both IT and technology companies, but which stock is superior? We’ll compare the two companies based on their risk strength, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
This table compares the net margins, return on equity, and return on assets of ON Semiconductor and Silicon Laboratories.
|Net margins||Return on equity||return on assets|
This is a summary of the current recommendations for ON Semiconductor and Silicon Laboratories, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
ON Semiconductor currently has a consensus target price of $67.31, indicating a potential upside of 29.17%. Silicon Laboratories has a consensus target price of $192.33, indicating a potential upside of 42.56%. Given Silicon Laboratories’ possible higher upside, analysts clearly believe that Silicon Laboratories is more favorable than ON Semiconductor.
Institutional and insider ownership
93.1% of ON Semiconductor’s shares are held by institutional investors. By comparison, 96.0% of Silicon Laboratories’ shares are held by institutional investors. 1.4% of ON Semiconductor’s stock is held by company insiders. By comparison, 1.6% of Silicon Laboratories stock is held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.
Benefits and evaluation
This table compares the gross revenue, earnings per share, and valuation of ON Semiconductor and Silicon Laboratories.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|ON Semiconductor||$6.74 billion||3.36||$1.01 billion||$2.28||22.86|
|Silicon Laboratories||$720.86 million||7.14||$2.12 billion||$47.70||2.83|
Silicon Laboratories has lower revenues, but higher profits than ON Semiconductor. Silicon Laboratories trades at a lower price-to-earnings ratio than ON Semiconductor, indicating that it is currently the more affordable of the two stocks.
Volatility and risk
ON Semiconductor has a beta of 1.71, indicating its stock price is 71% more volatile than the S&P 500. By comparison, Silicon Laboratories has a beta of 1.24, indicating its stock price is 24% more volatile than the S&P 500.
ON Semiconductor beats Silicon Laboratories on 8 of 15 factors compared between the two stocks.
About ON Semiconductor (Get a rating)
onsemi is committed to disruptive innovation and also a supplier of power and analog semiconductors. The company offers vehicle electrification and safety, sustainable energy networks, industrial automation, and 5G and cloud infrastructure, with a focus on the automotive and industrial end markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group and Intelligent Sensing Group. The Power Solutions Group segment offers discrete products, modules and semiconductors that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, amplification signal and voltage reference functions. The Advanced Solutions Group segment is involved in the design and development of analog, mixed-signal, advanced logic, ASSP and ASIC, Wi-Fi and power solutions for a broad base of end users in automotive, consumer , computer, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment focuses on the design and development of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, including
About Silicon Labs (Get a rating)
Silicon Laboratories Inc., a fabless semiconductor company, provides mixed-signal integrated circuits (ICs) in the United States, China and around the world. The Company offers microcontrollers and wireless products, including 32-bit, 8-bit mixed-signal, ultra-low-power (MCU) microcontrollers; wireless MCU connectivity solutions; single-protocol and multi-protocol system-on-chip (SoC) devices and modules; wireless, MCU and SoC protocols; internal protocol stacks; Micrium, a real-time operating system that helps simplify software development for IoT developers. timing devices; multi-channel isolators, isolated drivers, isolated power converters and mixed-signal devices; broadcast products, which include single-chip hybrid TV tuners and digital video demodulators, as well as AM/FM, HD radio and DAB/DAB+ receivers; and software-defined hybrid radio tuners, data receivers and digital radio co-processors. In addition, the company offers ProSLIC, a subscriber line interface circuit for voice over IP; Embedded modems ISOmodem; and Power over Ethernet power source equipment and PD ICs. It primarily markets its products to the Internet of Things, Internet Infrastructure, Industrial Automation, Consumer and Automotive markets through a direct sales force, as well as through a network of sales representatives and independent distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.
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