Financial Survey: Xilinx (XLNX) versus Lattice Semiconductor Corporation (LSCC)

Xilinx (NASDAQ: XLNX) and Lattice Semiconductor Corporation (NASDAQ:LSCC) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Xilinx pays an annual dividend of $1.40 per share and has a dividend yield of 1.9%. Lattice Semiconductor Corporation does not pay a dividend. Xilinx pays out 60.1% of its earnings in the form of a dividend. Xilinx has increased its dividend for 6 consecutive years.

Institutional & Insider Ownership

97.4% of Xilinx shares are owned by institutional investors. Comparatively, 87.8% of Lattice Semiconductor Corporation shares are owned by institutional investors. 0.4% of Xilinx shares are owned by company insiders. Comparatively, 2.8% of Lattice Semiconductor Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xilinx $2.39 billion 7.54 $755.86 million $2.33 31.11
Lattice Semiconductor Corporation $430.06 million 1.58 $63.07 million ($0.34) -16.26

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

Profitability

This table compares Xilinx and Lattice Semiconductor Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xilinx 26.22% 24.70% 12.78%
Lattice Semiconductor Corporation -9.50% 3.95% 1.44%

Volatility and Risk

Xilinx has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Lattice Semiconductor Corporation has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Xilinx and Lattice Semiconductor Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xilinx 2 12 8 0 2.27
Lattice Semiconductor Corporation 0 3 0 0 2.00

Xilinx currently has a consensus price target of $65.21, suggesting a potential downside of 10.03%. Lattice Semiconductor Corporation has a consensus price target of $6.83, suggesting a potential upside of 23.57%. Given Lattice Semiconductor Corporation’s higher possible upside, analysts clearly believe Lattice Semiconductor Corporation is more favorable than Xilinx.

Summary

Xilinx beats Lattice Semiconductor Corporation on 12 of the 17 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 Lattice Semiconductor Corporation

Lattice Semiconductor Corporation is a United States-based company, which develops semiconductor technologies that it monetizes through products, solutions and licenses. The Company operates through two segments: the core Lattice (Core) business, which includes intellectual property (IP) and semiconductor devices, and Qterics, a discrete software-as-a-service business unit in the Lattice legal entity structure. The Company is a provider of customizable smart connectivity solutions based on its low power field programmable gate array (FPGA), video application specific standard product (ASSP), 60 gigahertz millimeter wave, and IP products to the consumer, communications, industrial, computing and automotive markets across the world. Its products include iCE40 Ultra/UltraLite, iCE40 LP/HX/LM, MachXO3, MachXO2, MachXO, HDMI Transmitters, HDMI Receivers, USB Type-C Port Controllers, Port Processors, Analog to HDMI/MHL Converters, MHL Transmitters, UltraGig 6400 and 802.11ad Chipsets.

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