Analyzing Sigma Designs (OTCMKTS:SIGM) & GSI Technology (NASDAQ:GSIT)

GSI Technology (NASDAQ:GSIT) and Sigma Designs (OTCMKTS:SIGM) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Insider & Institutional Ownership

33.2% of GSI Technology shares are held by institutional investors. 32.1% of GSI Technology shares are held by insiders. Comparatively, 4.5% of Sigma Designs shares are held by 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 and Earnings

This table compares GSI Technology and Sigma Designs’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GSI Technology	$29.69 million	2.90	-$15.98 million	($0.79)	-4.30
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A

GSI Technology has higher earnings, but lower revenue than Sigma Designs.

Risk and Volatility

GSI Technology has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Sigma Designs has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for GSI Technology and Sigma Designs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSI Technology	0	0	0	0	N/A
Sigma Designs	0	0	0	0	N/A

Profitability

This table compares GSI Technology and Sigma Designs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GSI Technology	-89.70%	-42.68%	-36.11%
Sigma Designs	N/A	N/A	N/A

About GSI Technology

GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.

About Sigma Designs

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.