STMicroelectronics (STM) & Its Peers Head-To-Head Contrast

STMicroelectronics (NYSE:STM) is one of 220 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its rivals? We will compare STMicroelectronics to related companies based on the strength of its earnings, dividends, analyst recommendations, valuation, institutional ownership, risk and profitability.

Insider & Institutional Ownership

5.0% of STMicroelectronics shares are held by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

STMicroelectronics pays an annual dividend of $0.31 per share and has a dividend yield of 0.7%. STMicroelectronics pays out 55.4% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 28.5% of their earnings in the form of a dividend. STMicroelectronics lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares STMicroelectronics and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
STMicroelectronics	3.80%	4.71%	3.31%
STMicroelectronics Competitors	-1,256.62%	-126.00%	-4.18%

Earnings & Valuation

This table compares STMicroelectronics and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
STMicroelectronics	$11.80 billion	$166.00 million	83.47
STMicroelectronics Competitors	$39.45 billion	$2.53 billion	17.48

STMicroelectronics’ rivals have higher revenue and earnings than STMicroelectronics. STMicroelectronics is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

STMicroelectronics has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, STMicroelectronics’ rivals have a beta of 2.80, suggesting that their average share price is 180% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for STMicroelectronics and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STMicroelectronics	0	6	13	0	2.68
STMicroelectronics Competitors	3520	12407	25867	1005	2.57

STMicroelectronics presently has a consensus price target of $75.06, indicating a potential upside of 60.56%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 41.28%. Given STMicroelectronics’ stronger consensus rating and higher probable upside, research analysts plainly believe STMicroelectronics is more favorable than its rivals.

Summary

STMicroelectronics rivals beat STMicroelectronics on 8 of the 15 factors compared.

About STMicroelectronics

STMicroelectronics is a global semiconductor company that designs, develops and manufactures chips and related products for customers in a range of industries. Its portfolio includes microcontrollers, analog and mixed-signal integrated circuits, power semiconductors, sensors, and microelectromechanical systems (MEMS). The company’s products are used in automotive systems, industrial equipment, communications devices, computers and consumer electronics. Its offerings support applications such as vehicle control and safety, factory automation, power management, and motion and environmental sensing.