Contrasting CEVA (CEVA) and Silicon Laboratories (SLAB)

CEVA (NASDAQ: CEVA) and Silicon Laboratories (NASDAQ:SLAB) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Institutional & Insider Ownership

86.5% of CEVA shares are held by institutional investors. Comparatively, 90.8% of Silicon Laboratories shares are held by institutional investors. 3.9% of CEVA shares are held by company insiders. Comparatively, 34.8% of Silicon Laboratories shares are held 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.

Risk & Volatility

CEVA has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Profitability

This table compares CEVA and Silicon Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CEVA 21.89% 9.02% 7.98%
Silicon Laboratories 9.60% 11.06% 7.30%

Analyst Recommendations

This is a breakdown of recent ratings for CEVA and Silicon Laboratories, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CEVA 0 0 5 0 3.00
Silicon Laboratories 0 1 7 0 2.88

CEVA presently has a consensus target price of $47.80, indicating a potential upside of 4.03%. Silicon Laboratories has a consensus target price of $99.63, indicating a potential upside of 4.92%. Given Silicon Laboratories’ higher possible upside, analysts clearly believe Silicon Laboratories is more favorable than CEVA.

Valuation & Earnings

This table compares CEVA and Silicon Laboratories’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CEVA $72.65 million 13.90 $13.10 million $0.85 54.06
Silicon Laboratories $697.63 million 5.79 $61.49 million $1.67 56.86

Silicon Laboratories has higher revenue and earnings than CEVA. CEVA is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.

Summary

Silicon Laboratories beats CEVA on 10 of the 14 factors compared between the two stocks.

CEVA Company Profile

CEVA, Inc. (CEVA) is a licensor of signal processing intellectual property (IP). The Company partners with semiconductor companies and original equipment manufacturers (OEMs) to create connected devices for a range of end markets, including mobile, consumer, automotive, industrial and Internet of things (IoT). The Company operates in the segment of licensing of intellectual property to semiconductor companies and electronic equipment manufacturers. CEVA addresses the requirements of the mobile, consumer, automotive, industrial and IoT markets by designing and licensing a range of application-specific signal processing platforms, which enable the design of solutions for developing a range of applications, including communications and connectivity, audio and voice, imaging and vision, and storage.

Silicon Laboratories Company Profile

Silicon Laboratories Inc. is a provider of silicon, software and solutions for the Internet of Things (IoT), Internet infrastructure, industrial, consumer and automotive markets. The Company operates through mixed-signal analog intensive products segment. It provides analog-intensive, mixed-signal solutions for use in a range of electronic products in various applications for the IoT market. It provides a range of timing and isolation products for infrastructure applications, including clocks and oscillators for networking equipment, data centers and wireless base stations, as well as digital isolators and current sensors for industrial power supplies and hybrid-electric vehicles. It provides broadcast products, such as television tuners and demodulators and automotive radio tuners, and access products, including subscriber line interface circuits for voice over Internet Protocol, embedded modems, and Power over Ethernet power source equipment and powered device integrated circuits.

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