Xilinx (NASDAQ: XLNX) and Freescale Semiconductor (NYSE:FSL) are both large-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares Xilinx and Freescale Semiconductor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xilinx $2.35 billion 7.83 $622.51 million $2.51 28.78
Freescale Semiconductor N/A N/A N/A $1.06 34.50

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Xilinx and Freescale Semiconductor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xilinx 2 9 10 0 2.38
Freescale Semiconductor 0 0 0 0 N/A

Xilinx presently has a consensus price target of $73.28, indicating a potential upside of 1.45%. Given Xilinx’s higher probable upside, equities analysts plainly believe Xilinx is more favorable than Freescale Semiconductor.

Institutional and Insider Ownership

93.2% of Xilinx shares are owned by institutional investors. 0.4% of Xilinx shares are owned by company 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 table compares Xilinx and Freescale Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xilinx 20.20% 27.61% 13.68%
Freescale Semiconductor 7.14% N/A 10.15%


Xilinx pays an annual dividend of $1.40 per share and has a dividend yield of 1.9%. Freescale Semiconductor does not pay a dividend. Xilinx pays out 55.8% of its earnings in the form of a dividend. Xilinx has increased its dividend for 7 consecutive years.


Xilinx beats Freescale Semiconductor on 11 of the 13 factors compared between the two stocks.

About Xilinx

Xilinx, Inc. (Xilinx) is engaged in designing and developing programmable devices and associated technologies. The Company’s programmable devices and associated technologies include integrated circuits (ICs) in the form of programmable logic devices (PLDs), including programmable System on Chips (SoCs) and three-dimensional ICs (3D ICs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx, and various third-party verification and IP cores. The Company provides design services, customer training, field engineering and technical support. Its PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs) that its customers program to perform desired logic functions, and programmable SoCs, which combine (Advanced reduced instruction set computing (RISC) Machines (ARM)) processor-based systems with programmable logic in a single device.

About Freescale Semiconductor

Freescale Semiconductor, Ltd. is a United States-based company, which provides microcontrollers and digital networking processors. The Company offers its product under various categories, including advanced reduced instruction set computer (RISC) machines (ARM) processors, such as QorIQ multicore processors; Power Architecture processors, such as integrated host processors; more processors, such as crypto coprocessors; analog and power management, such as drivers and switches; radio frequency (RF), such as digital front end processors; sensors, such as intelligent sensors and sensor hubs; wireless connectivity, and programs and technologies. The Company offers various applications, including basic rear view camera, EtherCAT, portable navigation devices, access and remote control, human machine interface (HMI), blood glucose monitors, and gas and water meter. Its software’s and tools include run-time software, software development tools and hardware development tools, among others.

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