Silicon Motion Technology (NASDAQ:SIMO) and CEVA (NASDAQ:CEVA) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
This table compares Silicon Motion Technology and CEVA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silicon Motion Technology||17.28%||19.04%||15.40%|
Risk & Volatility
Silicon Motion Technology has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, CEVA has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.
Earnings & Valuation
This table compares Silicon Motion Technology and CEVA’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Silicon Motion Technology||$530.35 million||2.83||$98.07 million||$3.41||12.18|
Silicon Motion Technology has higher revenue and earnings than CEVA. Silicon Motion Technology is trading at a lower price-to-earnings ratio than CEVA, indicating that it is currently the more affordable of the two stocks.
Silicon Motion Technology pays an annual dividend of $1.19 per share and has a dividend yield of 2.9%. CEVA does not pay a dividend. Silicon Motion Technology pays out 34.9% of its earnings in the form of a dividend. Silicon Motion Technology has increased its dividend for 3 consecutive years.
This is a breakdown of recent ratings and recommmendations for Silicon Motion Technology and CEVA, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silicon Motion Technology||1||1||8||0||2.70|
Silicon Motion Technology currently has a consensus price target of $49.24, suggesting a potential upside of 18.57%. CEVA has a consensus price target of $32.20, suggesting a potential upside of 36.38%. Given CEVA’s higher possible upside, analysts plainly believe CEVA is more favorable than Silicon Motion Technology.
Institutional & Insider Ownership
69.9% of Silicon Motion Technology shares are owned by institutional investors. Comparatively, 85.1% of CEVA shares are owned by institutional investors. 3.8% of CEVA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Silicon Motion Technology beats CEVA on 10 of the 17 factors compared between the two stocks.
About Silicon Motion Technology
Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets semiconductor solutions for the mobile and enterprise storage, and mobile communications markets worldwide. It offers embedded storage and expandable storage products, including NAND flash controllers, such as embedded multimediacard (eMMC), universal flash storage, client solid-state drive (SSD), secure digital card, flash memory card controller, and universal serial bus flash drive controller products. The company also provides specialty storage solutions, such as customized enterprise-grade peripheral component interconnect express SSDs; and industrial-grade and commercial-grade single-chip SSDs. In addition, it offers specialty radio frequency integrated circuits (RF ICs), such as mobile TV system-on-chips (SoCs) and low power WiFi SoCs. The company's products are used in smartphones, tablets, digital cameras, camcorders, and desktop and notebook PCs, as well as in industrial, enterprise, commercial, and other applications. It offers its controllers under the SMI brand; enterprise-grade SSDs under the Shannon brand; single-chip industrial-grade SSDs under the Ferri SSD and Ferri-eMMC brands; RF ICs under the FCI brand; and software-defined storage products under the Bigtera brand. The company markets and sells its products through direct sales personnel and independent electronics distributors to flash manufacturers, original equipment manufacturers, and module makers. Silicon Motion Technology Corporation was founded in 1995 and is based in Kowloon, Hong Kong.
CEVA, Inc. licenses signal processing platforms and artificial intelligence processors for semiconductor companies and original equipment manufacturers (OEMs) serving the mobile, consumer, automotive, industrial, and Internet-of-Things (IoT) markets worldwide. The company licenses a family of signal processing intellectual properties (IPs), including platforms for 5G baseband processing in handsets and base station RAN; integrated cellular IoT solutions; digital signal processor (DSP) platforms incorporating voice input algorithms and software for voice enabled devices; and DSP platforms for advanced imaging and computer vision in various camera-enabled devices, as well as a family of self-contained artificial intelligent (AI) processors that address a range of edge applications. The company also provides IPs for Bluetooth and Wi-Fi platforms. Its technologies are licensed to companies, which design, manufacture, market, and sell application-specific integrated circuits and application-specific standard products to wireless, consumer electronics, and automotive companies for incorporation into various end products. The company delivers its DSP cores, platforms, and AI processors in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. CEVA, Inc. licenses its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was founded in 1999 and is headquartered in Mountain View, California.
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