Sunedison Semiconductor (NASDAQ: SEMI) and Cypress Semiconductor (NASDAQ:CY) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Dividends

Cypress Semiconductor pays an annual dividend of $0.44 per share and has a dividend yield of 2.4%. Sunedison Semiconductor does not pay a dividend. Cypress Semiconductor pays out -157.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sunedison Semiconductor and Cypress Semiconductor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunedison Semiconductor 0 0 0 0 N/A
Cypress Semiconductor 1 3 10 0 2.64

Cypress Semiconductor has a consensus price target of $19.04, indicating a potential upside of 5.95%.

Valuation and Earnings

This table compares Sunedison Semiconductor and Cypress Semiconductor’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sunedison Semiconductor N/A N/A N/A ($5.29) N/A
Cypress Semiconductor $2.33 billion 2.74 -$80.91 million ($0.28) -64.18

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

Profitability

This table compares Sunedison Semiconductor and Cypress Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sunedison Semiconductor -13.19% -24.50% -10.80%
Cypress Semiconductor -4.02% 12.48% 6.22%

Insider and Institutional Ownership

63.0% of Sunedison Semiconductor shares are owned by institutional investors. Comparatively, 85.7% of Cypress Semiconductor shares are owned by institutional investors. 1.9% of Sunedison Semiconductor shares are owned by insiders. Comparatively, 0.7% of Cypress Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cypress Semiconductor beats Sunedison Semiconductor on 9 of the 11 factors compared between the two stocks.

Sunedison Semiconductor Company Profile

SunEdison Semiconductor Limited is engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry. The Company also develops advanced substrates, such as epitaxial (EPI) wafers and wafers for the silicon-on-insulator (SOI) market, which enable computing and communications applications. Its products include polished wafers, EPI wafers and SOI wafers. The Company sells its products to the semiconductor manufacturers around the world, including integrated device manufacturers, pure-play semiconductor foundries and companies that specialize in wafer customization. It operates facilities in semiconductor manufacturing regions throughout the world, including Taiwan, Malaysia, South Korea, Italy, Japan, and the United States. Its wafers are used as the base substrate for the manufacture of various types of semiconductor devices, including microprocessors, memory, analog, mixed-signal and radio frequency (RF) integrated circuits, discrete and image sensors.

Cypress Semiconductor Company Profile

Cypress Semiconductor Corporation manufactures embedded system solutions for automotive, industrial, home automation and appliances, consumer electronics and medical products. The Company’s segments include Microcontroller and Connectivity Division (MCD), and Memory Products Division (MPD). MCD focuses on microcontroller (MCU), analog and wireless and wired connectivity solutions. MPD focuses on parallel and serial NOR flash memories, NAND flash memories, static random access memory (SRAM), ferroelectric-random access memory (F-RAM) ferroelectric memory devices and other specialty memories. The Company’s products include Traveo MCUs and Flexible MCUs; PSoC 1, PSoC 3, PSoC 4 and PSoC 5LP; CapSense, and TrueTouch Analog Power Management integrated circuits (PMICs) and energy harvesting solutions.

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