EMCORE (NASDAQ:EMKR) vs. Silicon Laboratories (NASDAQ:SLAB) Head-To-Head Contrast

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Silicon Laboratories and EMCORE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicon Laboratories	0	5	6	0	2.55
EMCORE	0	3	0	0	2.00

Silicon Laboratories currently has a consensus target price of $136.20, suggesting a potential upside of 49.18%. EMCORE has a consensus target price of $3.00, suggesting a potential downside of 3.23%. Given Silicon Laboratories’ stronger consensus rating and higher possible upside, analysts plainly believe Silicon Laboratories is more favorable than EMCORE.

Insider and Institutional Ownership

65.7% of EMCORE shares are held by institutional investors. 1.6% of Silicon Laboratories shares are held by company insiders. Comparatively, 0.9% of EMCORE shares are held 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.

Risk and Volatility

Silicon Laboratories has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Profitability

This table compares Silicon Laboratories and EMCORE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silicon Laboratories	-32.69%	-10.46%	-9.12%
EMCORE	-42.00%	-24.27%	-12.59%

Valuation and Earnings

This table compares Silicon Laboratories and EMCORE”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silicon Laboratories	$584.39 million	5.07	-$191.01 million	($5.94)	-15.37
EMCORE	$81.08 million	0.35	-$31.24 million	($2.92)	-1.06

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

Summary

Silicon Laboratories beats EMCORE on 9 of the 14 factors compared between the two stocks.

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.

About EMCORE

EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.