Comparing Cabot Microelectronics Corporation (CCMP) & Sanmina Corporation (SANM)
Cabot Microelectronics Corporation (NASDAQ: CCMP) and Sanmina Corporation (NASDAQ:SANM) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
This table compares Cabot Microelectronics Corporation and Sanmina Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cabot Microelectronics Corporation||16.41%||16.08%||11.31%|
Volatility & Risk
Cabot Microelectronics Corporation has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Sanmina Corporation has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Cabot Microelectronics Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Sanmina Corporation does not pay a dividend. Cabot Microelectronics Corporation pays out 25.1% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Cabot Microelectronics Corporation and Sanmina Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cabot Microelectronics Corporation||$493.08 million||3.86||$131.35 million||$3.19||23.68|
|Sanmina Corporation||$6.78 billion||0.41||$359.35 million||$2.76||13.51|
Sanmina Corporation has higher revenue and earnings than Cabot Microelectronics Corporation. Sanmina Corporation is trading at a lower price-to-earnings ratio than Cabot Microelectronics Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
93.9% of Cabot Microelectronics Corporation shares are owned by institutional investors. Comparatively, 92.8% of Sanmina Corporation shares are owned by institutional investors. 5.5% of Cabot Microelectronics Corporation shares are owned by insiders. Comparatively, 5.0% of Sanmina Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Cabot Microelectronics Corporation and Sanmina Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cabot Microelectronics Corporation||0||1||3||0||2.75|
Cabot Microelectronics Corporation presently has a consensus target price of $80.00, suggesting a potential upside of 5.92%. Sanmina Corporation has a consensus target price of $43.25, suggesting a potential upside of 15.95%. Given Sanmina Corporation’s higher possible upside, analysts plainly believe Sanmina Corporation is more favorable than Cabot Microelectronics Corporation.
Cabot Microelectronics Corporation beats Sanmina Corporation on 11 of the 15 factors compared between the two stocks.
About Cabot Microelectronics Corporation
Cabot Microelectronics Corporation supplies polishing slurries and pads used in the manufacture of integrated circuit (IC) devices within the semiconductor industry, in a process called chemical mechanical planarization (CMP). The Company is engaged in the development, manufacture and sale of CMP consumables. The Company develops, produces and sells CMP slurries for polishing conducting and insulating materials used in IC devices, and also for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells CMP polishing pads, which are used in conjunction with slurries in the CMP process. The Company also pursues other surface modification applications through its engineered surface finishes (ESF) business. The Company offers CMP polishing pads, under the Epic and NexPlanar brand names, for a range of applications and technology nodes.
About Sanmina Corporation
Sanmina Corporation is a provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services. The Company provides its offerings primarily to original equipment manufacturers (OEMs) in various industries, including communications networks, storage, industrial, defense and aerospace, medical and energy. The Company operates through two businesses: Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS). IMS consists of printed circuit board assembly and test, final system assembly and test, and direct-order-fulfillment. Its Components include interconnect systems and mechanical systems. Its Products include memory, radio frequency (RF), optical and microelectronics solutions, defense and aerospace products, storage solutions and cloud-based manufacturing execution software. Its Services include design, engineering, logistics and repair services.
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