Lattice Semiconductor (NASDAQ:LSCC – Get Free Report) and STMicroelectronics (NYSE:STM – Get Free Report) are both large-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Valuation and Earnings
This table compares Lattice Semiconductor and STMicroelectronics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lattice Semiconductor | $523.26 million | 32.11 | $3.08 million | $0.32 | 369.18 |
| STMicroelectronics | $11.80 billion | 3.55 | $166.00 million | $0.56 | 83.25 |
STMicroelectronics has higher revenue and earnings than Lattice Semiconductor. STMicroelectronics is trading at a lower price-to-earnings ratio than Lattice Semiconductor, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
98.1% of Lattice Semiconductor shares are owned by institutional investors. Comparatively, 5.0% of STMicroelectronics shares are owned by institutional investors. 0.6% of Lattice Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Lattice Semiconductor and STMicroelectronics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lattice Semiconductor | 0 | 1 | 11 | 2 | 3.07 |
| STMicroelectronics | 0 | 6 | 13 | 0 | 2.68 |
Lattice Semiconductor currently has a consensus price target of $166.82, indicating a potential upside of 41.21%. STMicroelectronics has a consensus price target of $75.06, indicating a potential upside of 60.99%. Given STMicroelectronics’ higher possible upside, analysts clearly believe STMicroelectronics is more favorable than Lattice Semiconductor.
Risk & Volatility
Lattice Semiconductor has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, STMicroelectronics has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.
Profitability
This table compares Lattice Semiconductor and STMicroelectronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lattice Semiconductor | 5.53% | 14.94% | 10.18% |
| STMicroelectronics | 3.80% | 4.71% | 3.31% |
Summary
Lattice Semiconductor beats STMicroelectronics on 9 of the 15 factors compared between the two stocks.
About Lattice Semiconductor
Lattice Semiconductor is a fabless semiconductor company that develops programmable logic devices, including field-programmable gate arrays (FPGAs). Its products let customers configure hardware for specific applications and are supported by design software and development tools. The company focuses on low-power programmable solutions used in areas such as communications, computing, industrial systems, automotive applications and consumer electronics. Lattice serves customers and markets globally.
About STMicroelectronics
STMicroelectronics is a global semiconductor company that designs, develops and manufactures chips and related products for customers in a range of industries. Its portfolio includes microcontrollers, analog and mixed-signal integrated circuits, power semiconductors, sensors, and microelectromechanical systems (MEMS). The company’s products are used in automotive systems, industrial equipment, communications devices, computers and consumer electronics. Its offerings support applications such as vehicle control and safety, factory automation, power management, and motion and environmental sensing.
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