Silicon Laboratories (NASDAQ:SLAB – Get Free Report) and indie Semiconductor (NASDAQ:INDI – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Earnings & Valuation
This table compares Silicon Laboratories and indie Semiconductor”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Silicon Laboratories | $784.76 million | 9.38 | -$64.91 million | ($1.18) | -186.93 |
| indie Semiconductor | $217.39 million | 3.84 | -$143.07 million | ($0.73) | -4.93 |
Analyst Recommendations
This is a summary of current ratings and target prices for Silicon Laboratories and indie Semiconductor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Silicon Laboratories | 2 | 5 | 0 | 0 | 1.71 |
| indie Semiconductor | 1 | 2 | 1 | 0 | 2.00 |
Silicon Laboratories currently has a consensus target price of $218.00, suggesting a potential downside of 1.17%. indie Semiconductor has a consensus target price of $4.75, suggesting a potential upside of 31.94%. Given indie Semiconductor’s stronger consensus rating and higher probable upside, analysts clearly believe indie Semiconductor is more favorable than Silicon Laboratories.
Institutional & Insider Ownership
67.7% of indie Semiconductor shares are owned by institutional investors. 1.6% of Silicon Laboratories shares are owned by company insiders. Comparatively, 2.6% of indie Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Silicon Laboratories and indie Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Silicon Laboratories | -4.57% | -0.66% | -0.57% |
| indie Semiconductor | -65.18% | -32.02% | -13.61% |
Risk and Volatility
Silicon Laboratories has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, indie Semiconductor has a beta of 2.78, suggesting that its share price is 178% more volatile than the S&P 500.
Summary
indie Semiconductor beats Silicon Laboratories on 8 of the 14 factors compared between the two stocks.
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.
About indie Semiconductor
indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.
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