Micrel (NASDAQ: MCRL) and Cabot Microelectronics (NASDAQ:CCMP) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Insider & Institutional Ownership
95.1% of Cabot Microelectronics shares are held by institutional investors. 3.3% of Cabot Microelectronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Micrel and Cabot Microelectronics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cabot Microelectronics has a consensus target price of $109.50, suggesting a potential downside of 3.65%. Given Cabot Microelectronics’ higher probable upside, analysts clearly believe Cabot Microelectronics is more favorable than Micrel.
Cabot Microelectronics pays an annual dividend of $0.80 per share and has a dividend yield of 0.7%. Micrel does not pay a dividend. Cabot Microelectronics pays out 21.7% of its earnings in the form of a dividend.
Volatility and Risk
Micrel has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Cabot Microelectronics has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Earnings & Valuation
This table compares Micrel and Cabot Microelectronics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cabot Microelectronics||$507.18 million||5.74||$86.95 million||$3.69||30.80|
Cabot Microelectronics has higher revenue and earnings than Micrel. Cabot Microelectronics is trading at a lower price-to-earnings ratio than Micrel, indicating that it is currently the more affordable of the two stocks.
This table compares Micrel and Cabot Microelectronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cabot Microelectronics beats Micrel on 11 of the 13 factors compared between the two stocks.
Micrel, Incorporated designs, develops, manufactures, and markets a range of high-performance analog, power and mixed-signal integrated circuits (ICs). The Company’s products address a range of markets, including industrial and automotive, wireline communications, enterprise and cloud infrastructure and mobility. It also manufactures custom analog and mixed-signal circuits and provides wafer foundry services for customers which produce electronic systems utilizing semiconductor manufacturing processes, as well as micro-electrical mechanical system (MEMS) technologies. Its offers a linear and power management product portfolio for the networking and communications infrastructure markets, including cloud and enterprise servers, network switches and routers, storage area networks, wireless base stations, and the Internet of Everything. In addition, it offers products that serve the solid state drive market and are seeing strength in the emergence of solid state drives.
About Cabot Microelectronics
Cabot Microelectronics Corporation supplies polishing slurries and pads used in the manufacture of integrated circuit (IC) devices within the semiconductor industry, in a process called chemical mechanical planarization (CMP). The Company is engaged in the development, manufacture and sale of CMP consumables. The Company develops, produces and sells CMP slurries for polishing conducting and insulating materials used in IC devices, and also for polishing the disk substrates and magnetic heads used in hard disk drives. It also develops, manufactures and sells CMP polishing pads, which are used in conjunction with slurries in the CMP process. The Company also pursues other surface modification applications through its engineered surface finishes (ESF) business. The Company offers CMP polishing pads, under the Epic and NexPlanar brand names, for a range of applications and technology nodes.
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