Head to Head Comparison: Richardson Electronics (NASDAQ:RELL) versus Semiconductor Manufacturing International (OTCMKTS:SMICY)

Richardson Electronics (NASDAQ:RELL) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Insider & Institutional Ownership

72.0% of Richardson Electronics shares are held by institutional investors. Comparatively, 0.0% of Semiconductor Manufacturing International shares are held by institutional investors. 33.4% of Richardson Electronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Richardson Electronics and Semiconductor Manufacturing International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Richardson Electronics	0	1	1	1	3.00
Semiconductor Manufacturing International	0	0	0	0	0.00

Richardson Electronics presently has a consensus price target of $24.00, suggesting a potential upside of 20.48%. Given Richardson Electronics’ stronger consensus rating and higher possible upside, research analysts clearly believe Richardson Electronics is more favorable than Semiconductor Manufacturing International.

Valuation and Earnings

This table compares Richardson Electronics and Semiconductor Manufacturing International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Richardson Electronics	$228.56 million	1.28	$6.38 million	$0.44	45.27
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67

Semiconductor Manufacturing International has higher revenue and earnings than Richardson Electronics. Richardson Electronics is trading at a lower price-to-earnings ratio than Semiconductor Manufacturing International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Richardson Electronics and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Richardson Electronics	2.79%	3.55%	2.83%
Semiconductor Manufacturing International	14.53%	4.00%	2.62%

Risk and Volatility

Richardson Electronics has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Summary

Richardson Electronics beats Semiconductor Manufacturing International on 10 of the 15 factors compared between the two stocks.

About Richardson Electronics

Richardson Electronics, Ltd. engages in the provision of engineered solutions, power grid and microwave tube, and related consumables worldwide. The Power and Microwave Technologies segment manufactures electron tubes and radio frequency (RF), microwave and power components used in semiconductor manufacturing equipment, RF, and wireless and industrial power applications, as well as various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. This segment also provides thyratrons and rectifiers, power tubes, ignitrons, magnetrons, phototubes, microwave generators, ultracapacitor modules, and liquid crystal display monitors under the Amperex, Cetron, and National brands. The Green Energy Solutions segment offers design-in support, systems integration, prototype design and manufacturing, testing, logistics and aftermarket, and technical service and repair services for various applications, such as wind, solar, hydrogen, and electric vehicles; and other power management applications that support green solutions including synthetic diamond manufacturing. The Canvys segment provides custom display solutions, which includes touch screens, protective panels, custom enclosures, All-In-One computers, specialized cabinet finishes and application specific software packages, and certification services. The Healthcare segment provides diagnostic imaging replacement parts for CT and MRI systems, replacement CT and MRI tubes, CT service training, MRI and RF amplifiers, hydrogen thyratrons, klystrons, magnetrons, flat panel detector upgrades, pre-owned CT systems, and additional replacement solutions. It serves energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The company was founded in 1947 and is headquartered in LaFox, Illinois.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.