Lattice Semiconductor (NASDAQ:LSCC) and Semtech (NASDAQ:SMTC) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Earnings and Valuation
This table compares Lattice Semiconductor and Semtech’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lattice Semiconductor | $398.80 million | 6.27 | -$26.32 million | $0.22 | 85.09 |
| Semtech | $627.20 million | 5.28 | $63.06 million | $1.33 | 37.57 |
Semtech has higher revenue and earnings than Lattice Semiconductor. Semtech is trading at a lower price-to-earnings ratio than Lattice Semiconductor, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Lattice Semiconductor and Semtech, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lattice Semiconductor | 0 | 0 | 6 | 0 | 3.00 |
| Semtech | 0 | 3 | 8 | 0 | 2.73 |
Lattice Semiconductor currently has a consensus price target of $18.08, suggesting a potential downside of 3.40%. Semtech has a consensus price target of $48.45, suggesting a potential downside of 3.03%. Given Semtech’s higher probable upside, analysts plainly believe Semtech is more favorable than Lattice Semiconductor.
Profitability
This table compares Lattice Semiconductor and Semtech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lattice Semiconductor | 5.60% | 18.64% | 8.60% |
| Semtech | 8.71% | 10.64% | 6.96% |
Insider and Institutional Ownership
95.4% of Lattice Semiconductor shares are owned by institutional investors. Comparatively, 96.0% of Semtech shares are owned by institutional investors. 0.8% of Lattice Semiconductor shares are owned by company insiders. Comparatively, 2.0% of Semtech shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Lattice Semiconductor has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Semtech has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.
Summary
Semtech beats Lattice Semiconductor on 9 of the 14 factors compared between the two stocks.
About Lattice Semiconductor
Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor technologies in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of five product family lines, including the ECP, MachXO, iCE40, CrossLink, and programmable mixed signal devices. It also provides video connectivity application specific standard products, such as port processors, port controllers, video processors, transmitters, receivers, bridges, and converters for use in mobile phones, UHD TVs, home theater systems, HDMI cable extenders, automotive infotainment, PCs, accessories, projectors, and monitors. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. Lattice Semiconductor Corporation sells its products directly to end customers; and indirectly through a network of independent manufacturers’ representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, mobile and consumer, and industrial and automotive end markets. Lattice Semiconductor Corporation was founded in 1983 and is headquartered in Hillsboro, Oregon.
About Semtech
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. The company provides signal integrity products, including a portfolio of optical data communications and video transport products used in various enterprise computing, industrial, and communications applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. It also offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and wireless and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products used in industrial and consumer applications. In addition, the company provides power products consisting of switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging that control, alter, regulate, and condition the power within electronic systems. It serves original equipment manufacturers and their suppliers in the enterprise computing, communications, and consumer and industrial end-markets. The company sells its products directly, as well as through independent sales representative firms and independent distributors in the United States, Europe, and Asia. Semtech Corporation was founded in 1960 and is headquartered in Camarillo, California.
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