STMicroelectronics (NYSE: STM) is one of 102 public companies in the “Semiconductors” industry, but how does it contrast to its competitors? We will compare STMicroelectronics to related businesses based on the strength of its profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Earnings and Valuation

This table compares STMicroelectronics and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
STMicroelectronics $6.97 billion $165.00 million 32.41
STMicroelectronics Competitors $4.38 billion $573.56 million 40.09

STMicroelectronics has higher revenue, but lower earnings than its competitors. STMicroelectronics is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

STMicroelectronics has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, STMicroelectronics’ competitors have a beta of 1.02, indicating that their average share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for STMicroelectronics and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STMicroelectronics 1 2 5 0 2.50
STMicroelectronics Competitors 944 4798 8798 366 2.58

STMicroelectronics currently has a consensus price target of $20.17, indicating a potential downside of 8.50%. As a group, “Semiconductors” companies have a potential upside of 14.13%. Given STMicroelectronics’ competitors stronger consensus rating and higher probable upside, analysts clearly believe STMicroelectronics has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

5.1% of STMicroelectronics shares are held by institutional investors. Comparatively, 65.2% of shares of all “Semiconductors” companies are held by institutional investors. 6.7% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares STMicroelectronics and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STMicroelectronics 7.84% 13.47% 7.51%
STMicroelectronics Competitors -42.20% 1.27% 1.26%

Dividends

STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. STMicroelectronics pays out 29.4% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.4% and pay out 51.6% of their earnings in the form of a dividend.

Summary

STMicroelectronics competitors beat STMicroelectronics on 9 of the 15 factors compared.

About STMicroelectronics

STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company’s segments include Automotive and Discrete Group (ADG), Analog and MEMS Group (AMG), Microcontrollers and Digital ICs Group (MDG), and Others. ADG comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. AMG includes low-power analog ICs for all markets; smart power products; Touch Screen Controllers; Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products. MDG comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories. The Others segment includes all the financial values related to the Imaging Product Division, Subsystems and other products.

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