Critical Contrast: Atmel (ATML) and The Competition

Atmel (NASDAQ: ATML) is one of 87 publicly-traded companies in the “Semiconductors” industry, but how does it weigh in compared to its competitors? We will compare Atmel to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Dividends

Atmel pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Atmel pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors” companies pay a dividend yield of 1.6% and pay out 58.6% of their earnings in the form of a dividend. Atmel lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Atmel N/A N/A 135.67
Atmel Competitors $4.68 billion $619.07 million 41.29

Atmel’s competitors have higher revenue and earnings than Atmel. Atmel is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

66.2% of shares of all “Semiconductors” companies are held by institutional investors. 5.8% of shares of all “Semiconductors” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Atmel 1.81% 2.18% 1.48%
Atmel Competitors -47.78% 1.80% 1.99%

Analyst Recommendations

This is a summary of current recommendations for Atmel and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atmel 0 0 0 0 N/A
Atmel Competitors 924 4581 8575 361 2.58

As a group, “Semiconductors” companies have a potential upside of 12.70%. Given Atmel’s competitors higher probable upside, analysts clearly believe Atmel has less favorable growth aspects than its competitors.

Volatility & Risk

Atmel has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Atmel’s competitors have a beta of 1.03, meaning that their average stock price is 3% more volatile than the S&P 500.

Summary

Atmel competitors beat Atmel on 7 of the 11 factors compared.

Atmel Company Profile

Atmel Corporation supplies microcontrollers. The Company operates through four segments: Microcontroller, Nonvolatile Memory, Automotive and Multi-Market and Other. The Microcontroller segment includes its microcontroller and microprocessor families; AVR 8-bit and 32-bit products; Atmel SMART ARM-based products; designated commercial wireless products, including low power radio and System-on-a-chip products; optimized products for smart energy, touch button, and mobile sensor hub and Light Emitting Diode (LED) lighting applications, and maXTouch capacitive touch product families. The Nonvolatile Memory segment includes electrically erasable programmable read-only, erasable programmable read-only memory devices and secure cryptographic products. The Automotive segment includes devices for automotive electronics, including products using radio frequency technology. The Multi-Market and Other segment includes application specific and standard products for aerospace applications.

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