Contrasting Intchains Group (NASDAQ:ICG) and GCT Semiconductor (NYSE:GCTS)

Intchains Group (NASDAQ:ICG) and GCT Semiconductor (NYSE:GCTS) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares Intchains Group and GCT Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intchains Group	12.96%	2.57%	2.47%
GCT Semiconductor	N/A	N/A	-16.19%

Insider & Institutional Ownership

28.1% of GCT Semiconductor shares are held by institutional investors. 0.2% of GCT Semiconductor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Intchains Group and GCT Semiconductor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intchains Group	0	0	1	0	3.00
GCT Semiconductor	0	0	1	0	3.00

Intchains Group presently has a consensus price target of $11.00, indicating a potential upside of 152.87%. GCT Semiconductor has a consensus price target of $8.00, indicating a potential upside of 207.69%. Given GCT Semiconductor’s higher probable upside, analysts plainly believe GCT Semiconductor is more favorable than Intchains Group.

Valuation & Earnings

This table compares Intchains Group and GCT Semiconductor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intchains Group	$80.47 million	3.24	-$3.78 million	($0.10)	-43.50
GCT Semiconductor	$16.03 million	7.44	-$2.00 million	N/A	N/A

GCT Semiconductor has lower revenue, but higher earnings than Intchains Group.

Volatility & Risk

Intchains Group has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, GCT Semiconductor has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Summary

GCT Semiconductor beats Intchains Group on 6 of the 10 factors compared between the two stocks.

About Intchains Group

Intchains Group Limited designs and sells application-specific integrated circuit chips for blockchain applications in the People's Republic of China. The company also offers ancillary software, hardware, and other products. It serves distributors. Intchains Group Limited was founded in 2017 and is based in Pudong, China.

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.