United Microelectronics (NYSE:UMC – Get Free Report) and Silicon Laboratories (NASDAQ:SLAB – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Institutional & Insider Ownership
5.1% of United Microelectronics shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by insiders. Comparatively, 1.7% of Silicon Laboratories shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for United Microelectronics and Silicon Laboratories, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Microelectronics | 0 | 4 | 1 | 0 | 2.20 |
| Silicon Laboratories | 0 | 6 | 5 | 0 | 2.45 |
Profitability
This table compares United Microelectronics and Silicon Laboratories’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Microelectronics | 22.89% | 14.35% | 9.13% |
| Silicon Laboratories | -46.93% | -12.60% | -10.85% |
Volatility & Risk
United Microelectronics has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
Valuation & Earnings
This table compares United Microelectronics and Silicon Laboratories”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Microelectronics | $226.87 billion | 0.07 | $1.95 billion | $0.65 | 10.05 |
| Silicon Laboratories | $504.98 million | 8.03 | -$34.52 million | ($7.40) | -16.89 |
United Microelectronics has higher revenue and earnings than Silicon Laboratories. Silicon Laboratories is trading at a lower price-to-earnings ratio than United Microelectronics, indicating that it is currently the more affordable of the two stocks.
Summary
United Microelectronics beats Silicon Laboratories on 10 of the 14 factors compared between the two stocks.
About United Microelectronics
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
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.
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