Head-To-Head Survey: indie Semiconductor (NASDAQ:INDI) vs. Silicon Laboratories (NASDAQ:SLAB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-65.18%	-32.02%	-13.61%
Silicon Laboratories	-4.57%	-0.66%	-0.57%

Volatility and Risk

indie Semiconductor has a beta of 2.78, suggesting that its stock price is 178% more volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Insider and Institutional Ownership

67.7% of indie Semiconductor shares are owned by institutional investors. 2.6% of indie Semiconductor shares are owned by company insiders. Comparatively, 1.6% of Silicon Laboratories shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares indie Semiconductor and Silicon Laboratories”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$217.39 million	3.84	-$143.07 million	($0.73)	-4.93
Silicon Laboratories	$784.76 million	9.38	-$64.91 million	($1.18)	-186.93

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

Analyst Ratings

This is a summary of current ratings and target prices for indie Semiconductor and Silicon Laboratories, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	1	2	1	0	2.00
Silicon Laboratories	2	5	0	0	1.71

indie Semiconductor presently has a consensus price target of $4.75, indicating a potential upside of 31.94%. Silicon Laboratories has a consensus price target of $218.00, indicating a potential downside of 1.17%. Given indie Semiconductor’s stronger consensus rating and higher probable upside, research analysts clearly believe indie Semiconductor is more favorable than Silicon Laboratories.

Summary

indie Semiconductor beats Silicon Laboratories on 8 of the 14 factors compared between the two stocks.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.

About Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, Taiwan, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the industrial Internet of Things (IoT), including industrial automation and control, smart buildings, access control, HVAC control, and industrial wearables and power tools; smart cities applications, such as smart metering, smart street lighting, renewable energy, electric vehicle supply equipment, and smart agriculture; commercial IoT applications, including smart lighting, asset tracking, electronic shelf labels, theft protection, and enterprise access points; smart home applications, comprising home automation/security systems, smart speakers, smart lighting, HVAC control, smart cameras, smart appliances, smart home sensing, smart locks, and window/blind controls; and connected health applications, including diabetes management, consumer health and fitness, elderly care, patient monitoring, and activity tracking; as well as in commercial building automation, consumer electronics, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.