Analog Devices (NASDAQ:ADI – Get Free Report) and Silicon Laboratories (NASDAQ:SLAB – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Profitability
This table compares Analog Devices and Silicon Laboratories’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Analog Devices | 18.65% | 9.56% | 6.99% |
| Silicon Laboratories | -25.16% | -8.80% | -7.68% |
Analyst Ratings
This is a summary of current recommendations and price targets for Analog Devices and Silicon Laboratories, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Analog Devices | 1 | 5 | 17 | 1 | 2.75 |
| Silicon Laboratories | 0 | 3 | 5 | 0 | 2.63 |
Earnings and Valuation
This table compares Analog Devices and Silicon Laboratories”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Analog Devices | $9.43 billion | 12.37 | $1.64 billion | $3.67 | 64.03 |
| Silicon Laboratories | $584.39 million | 8.25 | -$191.01 million | ($5.11) | -28.98 |
Analog Devices has higher revenue and earnings than Silicon Laboratories. Silicon Laboratories is trading at a lower price-to-earnings ratio than Analog Devices, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Analog Devices has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Silicon Laboratories has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
Insider and Institutional Ownership
86.8% of Analog Devices shares are owned by institutional investors. 0.3% of Analog Devices shares are owned by insiders. Comparatively, 1.6% of Silicon Laboratories shares are owned by 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.
Summary
Analog Devices beats Silicon Laboratories on 13 of the 15 factors compared between the two stocks.
About Analog Devices
Analog Devices, Inc. designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. The company provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. It also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, the company provides digital signal processing and system products for numeric calculations. It serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. Analog Devices, Inc. was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.
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.
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