Diodes (NASDAQ:DIOD – Get Free Report) and United Microelectronics (NYSE:UMC – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares Diodes and United Microelectronics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diodes | $1.63 billion | 2.93 | $66.14 million | $1.85 | 56.13 |
| United Microelectronics | $250.71 billion | 0.26 | $1.29 billion | $1.07 | 24.57 |
Analyst Ratings
This is a breakdown of current recommendations for Diodes and United Microelectronics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diodes | 0 | 1 | 3 | 1 | 3.00 |
| United Microelectronics | 3 | 2 | 1 | 0 | 1.67 |
Diodes presently has a consensus target price of $135.00, indicating a potential upside of 30.01%. United Microelectronics has a consensus target price of $8.60, indicating a potential downside of 67.29%. Given Diodes’ stronger consensus rating and higher probable upside, analysts clearly believe Diodes is more favorable than United Microelectronics.
Profitability
This table compares Diodes and United Microelectronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Diodes | 5.27% | 4.33% | 3.41% |
| United Microelectronics | 33.18% | 21.00% | 13.87% |
Risk & Volatility
Diodes has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.
Insider & Institutional Ownership
99.2% of Diodes shares are held by institutional investors. Comparatively, 5.1% of United Microelectronics shares are held by institutional investors. 1.7% of Diodes shares are held by insiders. Comparatively, 8.0% of United Microelectronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Diodes beats United Microelectronics on 9 of the 15 factors compared between the two stocks.
About Diodes
Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.
About United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
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