Financial Comparison: Onsemi (NASDAQ:ON) and Semiconductor Manufacturing International (OTCMKTS:SMICY)

Semiconductor Manufacturing International (OTCMKTS:SMICY) and Onsemi (NASDAQ:ON) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Semiconductor Manufacturing International and Onsemi, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semiconductor Manufacturing International	0	0	0	0	0.00
Onsemi	2	5	16	0	2.61

Onsemi has a consensus target price of $85.87, indicating a potential upside of 16.12%. Given Onsemi’s stronger consensus rating and higher probable upside, analysts clearly believe Onsemi is more favorable than Semiconductor Manufacturing International.

Valuation and Earnings

This table compares Semiconductor Manufacturing International and Onsemi”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67
Onsemi	$7.38 billion	4.27	$2.18 billion	$4.03	18.35

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

Profitability

This table compares Semiconductor Manufacturing International and Onsemi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semiconductor Manufacturing International	14.53%	4.00%	2.62%
Onsemi	23.80%	22.38%	13.57%

Institutional & Insider Ownership

0.0% of Semiconductor Manufacturing International shares are held by institutional investors. Comparatively, 97.7% of Onsemi shares are held by institutional investors. 0.3% of Onsemi shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Semiconductor Manufacturing International has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Onsemi has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Summary

Onsemi beats Semiconductor Manufacturing International on 12 of the 14 factors compared between the two stocks.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services. It operates in North America, China, Hong Kong, and Eurasia. The company serves integrated device manufacturers, fabless semiconductor companies, and system companies. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People's Republic of China.

About Onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment is involved in the designing and developing of analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment is focused on the designing and developing of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, inclu