Head-To-Head Review: Semiconductor Manufacturing International (OTCMKTS:SMICY) & Texas Instruments (NASDAQ:TXN)

Texas Instruments (NASDAQ:TXN) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Texas Instruments and Semiconductor Manufacturing International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Instruments	3	11	9	0	2.26
Semiconductor Manufacturing International	0	0	0	0	N/A

Texas Instruments presently has a consensus price target of $206.95, suggesting a potential upside of 1.87%. Given Texas Instruments’ higher possible upside, analysts plainly believe Texas Instruments is more favorable than Semiconductor Manufacturing International.

Insider & Institutional Ownership

85.0% of Texas Instruments shares are held by institutional investors. Comparatively, 0.0% of Semiconductor Manufacturing International shares are held by institutional investors. 0.7% of Texas Instruments shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Texas Instruments	31.60%	29.05%	14.43%
Semiconductor Manufacturing International	14.53%	4.00%	2.62%

Volatility and Risk

Texas Instruments has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Semiconductor Manufacturing International has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares Texas Instruments and Semiconductor Manufacturing International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Instruments	$16.09 billion	11.49	$6.51 billion	$6.41	31.69
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67

Texas Instruments has higher revenue and earnings than Semiconductor Manufacturing International. Texas Instruments 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.

Summary

Texas Instruments beats Semiconductor Manufacturing International on 12 of the 13 factors compared between the two stocks.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

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.