Linear Technology (NASDAQ: LLTC) is one of 97 public companies in the “Semiconductors” industry, but how does it weigh in compared to its competitors? We will compare Linear Technology to related companies based on the strength of its analyst recommendations, profitability, valuation, risk, institutional ownership, earnings and dividends.

Risk and Volatility

Linear Technology has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Linear Technology’s competitors have a beta of 1.02, suggesting that their average share price is 2% more volatile than the S&P 500.

Institutional and Insider Ownership

90.2% of Linear Technology shares are owned by institutional investors. Comparatively, 65.1% of shares of all “Semiconductors” companies are owned by institutional investors. 1.2% of Linear Technology shares are owned by company insiders. Comparatively, 6.7% of shares of all “Semiconductors” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Linear Technology pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. Linear Technology pays out 64.7% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.6% and pay out 61.8% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Linear Technology and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Linear Technology N/A N/A 31.86
Linear Technology Competitors $4.38 billion $573.56 million 41.05

Linear Technology’s competitors have higher revenue and earnings than Linear Technology. Linear Technology 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Linear Technology and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Linear Technology 0 3 0 0 2.00
Linear Technology Competitors 912 4698 8625 364 2.58

Linear Technology currently has a consensus price target of $63.00, indicating a potential downside of 3.08%. As a group, “Semiconductors” companies have a potential upside of 12.81%. Given Linear Technology’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Linear Technology has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Linear Technology 32.99% 26.98% 23.04%
Linear Technology Competitors -44.61% 0.22% 0.54%

Summary

Linear Technology competitors beat Linear Technology on 8 of the 14 factors compared.

Linear Technology Company Profile

Linear Technology Corporation is engaged in designing, manufacturing and marketing a line of analog integrated circuits. The Company produces power management, data conversion, signal conditioning, radio frequency (RF) and interface integrated circuits (ICs) and wireless sensor network products, among others. The Company’s principal product categories include amplifiers, high speed amplifiers, voltage regulators, voltage references, interfaces, data converters, battery stack monitors, silicon oscillators and timer blox, phase locked loop (PLL) synthesizers and clock distribution, SmartMesh embedded wireless sensor network, radio and microwave frequency circuits, Power Over Ethernet (PoE) Controllers, and Other. The Company’s products provide a bridge between analog world and the digital electronics in communications, networking, industrial, transportation, computer, medical, instrumentation, consumer, and military and aerospace systems.

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