Contrasting STMicroelectronics (STM) & Its Competitors

STMicroelectronics (NYSE: STM) is one of 97 public companies in the “Semiconductors” industry, but how does it weigh in compared to its peers? We will compare STMicroelectronics to related businesses based on the strength of its valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Insider & Institutional Ownership

5.1% of STMicroelectronics shares are owned by institutional investors. Comparatively, 65.1% of shares of all “Semiconductors” companies are owned by institutional investors. 6.7% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

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

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 58.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for STMicroelectronics and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STMicroelectronics 1 2 5 0 2.50
STMicroelectronics Competitors 913 4703 8589 360 2.58

STMicroelectronics presently has a consensus price target of $20.17, indicating a potential downside of 7.66%. As a group, “Semiconductors” companies have a potential upside of 13.89%. Given STMicroelectronics’ peers stronger consensus rating and higher possible upside, analysts clearly believe STMicroelectronics has less favorable growth aspects than its peers.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
STMicroelectronics $6.97 billion $165.00 million 33.09
STMicroelectronics Competitors $4.38 billion $573.56 million 37.08

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

Profitability

This table compares STMicroelectronics and its peers’ 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 -45.36% 1.09% 1.00%

Summary

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

STMicroelectronics Company Profile

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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