Comparing STMicroelectronics (STM) and Its Peers

STMicroelectronics (NYSE: STM) is one of 101 public companies in the “Semiconductors” industry, but how does it weigh in compared to its rivals? We will compare STMicroelectronics to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Dividends

STMicroelectronics pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. STMicroelectronics pays out 30.3% of its earnings in the form of a dividend. As a group, “Semiconductors” companies pay a dividend yield of 1.6% and pay out 58.0% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for STMicroelectronics and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STMicroelectronics 1 2 5 0 2.50
STMicroelectronics Competitors 950 4837 8869 367 2.58

STMicroelectronics currently has a consensus price target of $20.17, suggesting a potential downside of 9.36%. As a group, “Semiconductors” companies have a potential upside of 12.61%. Given STMicroelectronics’ rivals stronger consensus rating and higher probable upside, analysts plainly believe STMicroelectronics has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

5.1% of STMicroelectronics shares are owned by institutional investors. Comparatively, 65.7% of shares of all “Semiconductors” companies are owned by institutional investors. 6.3% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

STMicroelectronics has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, STMicroelectronics’ rivals have a beta of 1.02, meaning that their average stock price is 2% more volatile than the S&P 500.

Profitability

This table compares STMicroelectronics and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STMicroelectronics 7.84% 13.47% 7.51%
STMicroelectronics Competitors -41.00% -0.12% 0.25%

Valuation & Earnings

This table compares STMicroelectronics and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
STMicroelectronics $6.97 billion $165.00 million 33.71
STMicroelectronics Competitors $4.38 billion $573.56 million 40.08

STMicroelectronics has higher revenue, but lower earnings than its rivals. STMicroelectronics is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

STMicroelectronics rivals beat STMicroelectronics on 9 of the 15 factors compared.

About STMicroelectronics

STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company’s segments include Automotive and Discrete Group (ADG), Analog and MEMS Group (AMG), Microcontrollers and Digital ICs Group (MDG), and Others. ADG comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. AMG includes low-power analog ICs for all markets; smart power products; Touch Screen Controllers; Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products. MDG comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories. The Others segment includes all the financial values related to the Imaging Product Division, Subsystems and other products.

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