Critical Analysis: Entegris (NASDAQ:ENTG) & SiTime (NASDAQ:SITM)

SiTime (NASDAQ:SITM) and Entegris (NASDAQ:ENTG) are both large-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Profitability

This table compares SiTime and Entegris’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiTime	3.01%	4.99%	3.48%
Entegris	11.14%	13.86%	6.77%

Earnings & Valuation

This table compares SiTime and Entegris”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$326.66 million	39.92	-$42.90 million	$0.49	885.01
Entegris	$3.20 billion	7.39	$235.60 million	$2.56	60.42

Entegris has higher revenue and earnings than SiTime. Entegris is trading at a lower price-to-earnings ratio than SiTime, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

84.3% of SiTime shares are owned by institutional investors. 1.4% of SiTime shares are owned by insiders. Comparatively, 0.5% of Entegris shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

SiTime has a beta of 2.89, indicating that its stock price is 189% more volatile than the S&P 500. Comparatively, Entegris has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for SiTime and Entegris, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	0	2	10	1	2.92
Entegris	1	1	12	1	2.87

SiTime presently has a consensus price target of $721.00, indicating a potential upside of 66.26%. Entegris has a consensus price target of $187.17, indicating a potential upside of 21.01%. Given SiTime’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SiTime is more favorable than Entegris.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

About Entegris

Entegris, Inc. develops, manufactures, and supplies microcontamination control products, specialty chemicals, and advanced materials handling solutions in North America, Taiwan, China, South Korea, Japan, Europe, and Southeast Asia. It operates in three segments: Materials Solutions (MS); Microcontamination Control (MC); and Advanced Materials Handling (AMH). The MC segment solutions to purify critical liquid chemistries and process gases used in semiconductor manufacturing processes and other high-technology industries; integrated circuit chemical mechanical polishing solutions, high-performance etch and clean chemistries, gases and materials, and safe and materials delivery systems. The MS segment provides materials-based solutions, such as chemical mechanical planarization slurries, pads, deposition materials, process chemistries and gases, formulated cleans, etchants, and other specialty materials. The Advanced Materials Handling segment develops solutions for customers' yields by protecting critical materials during manufacturing, transportation, and storage, which include monitor, protect, transport and deliver critical liquid chemistries, wafers, and other substrates for semiconductor, life sciences and other high-technology industries. The company's customers include logic and memory semiconductor device manufacturers, semiconductor equipment makers, gas and chemical manufacturing companies, and wafer grower companies; and flat panel display equipment makers, panel manufacturers, and manufacturers of hard disk drive components and devices, as well as their related ecosystems. It serves manufacturers and suppliers in the solar and life science industries, electrical discharge machining customers, glass and glass container manufacturers, aerospace manufacturers, and manufacturers of biomedical implantation devices. Entegris, Inc. was founded in 1966 and is headquartered in Billerica, Massachusetts.