Financial Review: GCT Semiconductor (NYSE:GCTS) versus Spectra7 Microsystems (OTCMKTS:SPVNF)

Spectra7 Microsystems (OTCMKTS:SPVNF) and GCT Semiconductor (NYSE:GCTS) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Profitability

This table compares Spectra7 Microsystems and GCT Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectra7 Microsystems	N/A	N/A	N/A
GCT Semiconductor	-1,301.99%	N/A	-189.45%

Insider and Institutional Ownership

33.2% of Spectra7 Microsystems shares are owned by institutional investors. Comparatively, 28.1% of GCT Semiconductor shares are owned by institutional investors. 3.8% of GCT Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Spectra7 Microsystems and GCT Semiconductor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectra7 Microsystems	N/A	N/A	N/A	($0.46)	-0.01
GCT Semiconductor	$2.87 million	61.37	-$43.37 million	($0.80)	-2.39

Spectra7 Microsystems has higher earnings, but lower revenue than GCT Semiconductor. GCT Semiconductor is trading at a lower price-to-earnings ratio than Spectra7 Microsystems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Spectra7 Microsystems and GCT Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectra7 Microsystems	0	0	0	0	0.00
GCT Semiconductor	1	0	2	0	2.33

GCT Semiconductor has a consensus price target of $3.50, suggesting a potential upside of 82.77%. Given GCT Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe GCT Semiconductor is more favorable than Spectra7 Microsystems.

About Spectra7 Microsystems

Spectra7 Microsystems Inc. operates as an analog semiconductor company in Canada and China. The company offers virtual reality (VR) products, including VR7050 to enable lightweight and ultra-thin active interconnects for gesture recognition and motion control backhaul; augmented reality (AR) -Connect, an integrated cable, connector, and embedded chipset product line for AR vision systems and wearable computing devices; and DreamWeVR, includes VR8181, VR8050, VR8200 and VR8300 chips to support high-bandwidth, near-zero latency VR head-mounted displays, and AR glasses. It also provides GaugeChanger that allows copper to extend much longer lengths without the cost and power penalty of optics that are used in data centers; and USB 3.2 consumer interconnects for use in ultra-thin laptops, tablets, mobile devices, solid-state disks, and wearable computing devices. Spectra7 Microsystems Inc. is headquartered in San Jose, California.

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.