SMTC vs. ALTR, MTSI, CRUS, RMBS, POWI, SLAB, DIOD, AMBA, MXL, and AOSL
Should you be buying Semtech stock or one of its competitors? The main competitors of Semtech include Altair Engineering (ALTR), MACOM Technology Solutions (MTSI), Cirrus Logic (CRUS), Rambus (RMBS), Power Integrations (POWI), Silicon Laboratories (SLAB), Diodes (DIOD), Ambarella (AMBA), MaxLinear (MXL), and Alpha and Omega Semiconductor (AOSL). These companies are all part of the "semiconductors" industry.
Semtech (NASDAQ:SMTC) and Altair Engineering (NASDAQ:ALTR) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, community ranking, analyst recommendations, profitability, earnings and media sentiment.
63.4% of Altair Engineering shares are held by institutional investors. 0.6% of Semtech shares are held by company insiders. Comparatively, 21.8% of Altair Engineering shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Altair Engineering has a net margin of 1.55% compared to Semtech's net margin of -125.70%. Altair Engineering's return on equity of 5.60% beat Semtech's return on equity.
Semtech presently has a consensus target price of $42.35, suggesting a potential upside of 8.90%. Altair Engineering has a consensus target price of $94.60, suggesting a potential upside of 8.32%. Given Semtech's stronger consensus rating and higher possible upside, analysts plainly believe Semtech is more favorable than Altair Engineering.
Semtech has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Altair Engineering has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
Semtech received 130 more outperform votes than Altair Engineering when rated by MarketBeat users. Likewise, 71.80% of users gave Semtech an outperform vote while only 58.61% of users gave Altair Engineering an outperform vote.
Altair Engineering has lower revenue, but higher earnings than Semtech. Semtech is trading at a lower price-to-earnings ratio than Altair Engineering, indicating that it is currently the more affordable of the two stocks.
In the previous week, Semtech had 5 more articles in the media than Altair Engineering. MarketBeat recorded 10 mentions for Semtech and 5 mentions for Altair Engineering. Altair Engineering's average media sentiment score of 1.04 beat Semtech's score of 0.65 indicating that Altair Engineering is being referred to more favorably in the news media.
Summary
Altair Engineering beats Semtech on 10 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SMTC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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