e.Digital (OTCMKTS:EDIG) vs. Semiconductor Manufacturing International (OTCMKTS:SMICY) Critical Review

Volatility and Risk

e.Digital has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Earnings & Valuation

This table compares e.Digital and Semiconductor Manufacturing International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
e.Digital	$700,000.00	0.04	-$1.27 million	N/A	N/A
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67

Semiconductor Manufacturing International has higher revenue and earnings than e.Digital.

Profitability

This table compares e.Digital and Semiconductor Manufacturing International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
e.Digital	N/A	N/A	N/A
Semiconductor Manufacturing International	14.53%	4.00%	2.62%

Insider and Institutional Ownership

0.0% of Semiconductor Manufacturing International shares are held by institutional investors. 2.3% of e.Digital 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.

Summary

Semiconductor Manufacturing International beats e.Digital on 7 of the 9 factors compared between the two stocks.

About e.Digital

e.Digital Corporation engages in developing and marketing an intellectual property portfolio of context and interpersonal awareness systems, advanced data security technologies, secure communication technologies, and other technologies. It is involved in licensing and enforcing its Nunchi portfolio of patents related to context and interpersonal awareness systems; microSignet data security technology based on characteristics in semi-conductors; Synap security system, method, and apparatus to solve the issues of encryption key generation and exchange; and other technologies. The company was formerly known as Norris Communications, Inc. and changed its name to e.Digital Corporation in January 1999. e.Digital Corporation was founded in 1988 and is based in San Diego, California.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.