Fairchild Semiconductor Intl (NASDAQ: FCS) and United Microelectronics Corp (NYSE:UMC) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Fairchild Semiconductor Intl and United Microelectronics Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fairchild Semiconductor Intl 0 0 0 0 N/A
United Microelectronics Corp 8 1 0 0 1.11

United Microelectronics Corp has a consensus target price of $2.10, indicating a potential downside of 21.64%. Given United Microelectronics Corp’s higher possible upside, analysts plainly believe United Microelectronics Corp is more favorable than Fairchild Semiconductor Intl.

Dividends

United Microelectronics Corp pays an annual dividend of $0.06 per share and has a dividend yield of 2.2%. Fairchild Semiconductor Intl does not pay a dividend. United Microelectronics Corp pays out 46.2% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Fairchild Semiconductor Intl and United Microelectronics Corp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fairchild Semiconductor Intl N/A N/A N/A $0.06 331.06
United Microelectronics Corp $4.99 billion 1.31 $1.88 billion $0.13 20.62

United Microelectronics Corp has higher revenue and earnings than Fairchild Semiconductor Intl. United Microelectronics Corp is trading at a lower price-to-earnings ratio than Fairchild Semiconductor Intl, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fairchild Semiconductor Intl and United Microelectronics Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fairchild Semiconductor Intl 1.97% 2.46% 1.77%
United Microelectronics Corp 3.94% 3.93% 1.55%

Risk & Volatility

Fairchild Semiconductor Intl has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, United Microelectronics Corp has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

89.7% of Fairchild Semiconductor Intl shares are held by institutional investors. Comparatively, 5.4% of United Microelectronics Corp shares are held by institutional investors. 0.7% of Fairchild Semiconductor Intl shares are held by company insiders. Comparatively, 8.0% of United Microelectronics Corp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

United Microelectronics Corp beats Fairchild Semiconductor Intl on 7 of the 11 factors compared between the two stocks.

Fairchild Semiconductor Intl Company Profile

Fairchild Semiconductor International, Inc. is focused on developing, manufacturing and selling power management solutions. The Company is engaged in power analog and discrete design, as well as packaging. It also makes non-power semiconductor and micro-electro-mechanical systems (MEMS)-based solutions. The Company’s products are used in various end market applications, including industrial, home appliance, automotive, mobile, server and cloud computing, lighting and consumer electronics. It develops a range of power and signal path products for industrial, appliance, cloud computing and automotive applications. The Company’s segments include Switching Power Solutions segment (SPS), the Analog Power and Signal Solutions segment (APSS), and Standard Products Group (SPG). It also invests in wafer fabrication and packaging technology to support the development of these products. The Company also has an eight-inch wafer fabrication site in Bucheon, Korea.

United Microelectronics Corp Company Profile

United Microelectronics Corporation is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments: wafer fabrication and new business. The primary operating activity of the Company’s wafer fabrication segment is the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The new business segment primarily includes researching, developing, manufacturing, and providing solar energy and new generation light-emitting diode (LED). The Company maintains a customer base across various industries, including communication, consumer electronics, computer, memory and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.

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