Critical Contrast: GCT Semiconductor (GCTS) & Its Peers

GCT Semiconductor (NYSE:GCTS) is one of 173 public companies in the “Semiconductors & related devices” industry, but how does it contrast to its rivals? We will compare GCT Semiconductor to related companies based on the strength of its institutional ownership, risk, analyst recommendations, dividends, valuation, profitability and earnings.

Volatility & Risk

GCT Semiconductor has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, GCT Semiconductor’s rivals have a beta of 1.63, indicating that their average share price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for GCT Semiconductor and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCT Semiconductor	0	0	1	0	3.00
GCT Semiconductor Competitors	2547	10121	19830	708	2.56

GCT Semiconductor currently has a consensus target price of $5.00, indicating a potential upside of 241.06%. As a group, “Semiconductors & related devices” companies have a potential upside of 578.19%. Given GCT Semiconductor’s rivals higher probable upside, analysts plainly believe GCT Semiconductor has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

28.1% of GCT Semiconductor shares are owned by institutional investors. Comparatively, 57.2% of shares of all “Semiconductors & related devices” companies are owned by institutional investors. 0.2% of GCT Semiconductor shares are owned by insiders. Comparatively, 10.0% of shares of all “Semiconductors & related devices” companies 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.

Profitability

This table compares GCT Semiconductor and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCT Semiconductor	N/A	N/A	-27.81%
GCT Semiconductor Competitors	-470.17%	-79.71%	-11.21%

Earnings and Valuation

This table compares GCT Semiconductor and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GCT Semiconductor	$9.13 million	-$2.00 million	-5.64
GCT Semiconductor Competitors	$29.51 billion	$592.42 million	40.44

GCT Semiconductor’s rivals have higher revenue and earnings than GCT Semiconductor. GCT Semiconductor is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

GCT Semiconductor rivals beat GCT Semiconductor on 9 of the 13 factors compared.

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.