Financial Survey: Intel (INTC) versus Siliconware Precision Industries (SPIL)

Intel (NASDAQ:INTC) and Siliconware Precision Industries (NASDAQ:SPIL) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Intel and Siliconware Precision Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intel 20.07% 27.33% 15.17%
Siliconware Precision Industries 8.28% 10.27% 5.60%

Risk and Volatility

Intel has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Siliconware Precision Industries has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Institutional & Insider Ownership

65.4% of Intel shares are held by institutional investors. Comparatively, 2.7% of Siliconware Precision Industries shares are held by institutional investors. 0.0% of Intel shares are held by insiders. Comparatively, 14.3% of Siliconware Precision Industries 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Intel and Siliconware Precision Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intel 5 14 21 0 2.40
Siliconware Precision Industries 0 0 0 0 N/A

Intel presently has a consensus price target of $54.90, suggesting a potential upside of 16.73%. Given Intel’s higher probable upside, equities analysts clearly believe Intel is more favorable than Siliconware Precision Industries.

Valuation and Earnings

This table compares Intel and Siliconware Precision Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intel $62.76 billion 3.51 $9.60 billion $3.46 13.59
Siliconware Precision Industries $2.75 billion 1.95 $241.95 million N/A N/A

Intel has higher revenue and earnings than Siliconware Precision Industries.

Dividends

Intel pays an annual dividend of $1.20 per share and has a dividend yield of 2.6%. Siliconware Precision Industries pays an annual dividend of $0.21 per share and has a dividend yield of 2.4%. Intel pays out 34.7% of its earnings in the form of a dividend. Intel has increased its dividend for 3 consecutive years and Siliconware Precision Industries has increased its dividend for 2 consecutive years. Intel is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Intel beats Siliconware Precision Industries on 12 of the 15 factors compared between the two stocks.

Intel Company Profile

Intel Corporation designs, manufactures, and sells computer, networking, data storage, and communication platforms worldwide. The company operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. Its platforms are used in notebooks, desktops, and wireless and wired connectivity products; enterprise, cloud, and communication infrastructure market segments; and retail, automotive, industrial, and various other embedded applications. The company offers microprocessors, and system-on-chip and multichip packaging products. It also provides NAND flash memory products primarily used in solid-state drives; and programmable semiconductors and related products for communications, data center, industrial, military, and automotive markets. In addition, the company develops computer vision and machine learning, data analysis, localization, and mapping for advanced driver assistance systems and autonomous driving. It serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers. Intel Corporation has collaboration with Tata Consultancy Services to set up a center for advanced computing that develops solutions in the areas of high performance computing, high performance data analytics, and artificial intelligence. The company was founded in 1968 and is based in Santa Clara, California.

Siliconware Precision Industries Company Profile

Siliconware Precision Industries Co., Ltd. provides semiconductor packaging and testing services in the United States, China, Taiwan, Europe, and internationally. It provides packaging and testing solutions, including advanced packages, substrate packages, and lead-frame packages, as well as testing for logic and mixed signal devices to measure and ensure the performance, functionality, and reliability of packaged semiconductor devices. The company also offers turnkey services; and flip-chip and wafer bumping services. Its substrate packages category employs the ball grid array design, which utilizes a laminated substrate and places the electrical connections on the bottom of the package; and lead-frame packages that are characterized by a semiconductor chip encapsulated in a plastic molding compound with metal leads on the perimeter. The company's testing and other services include wafer probing that involves sorting the processed wafer for defects; final testing services for logic and mixed signal and RF integrated circuit packages; burn in services for testing products; and other testing services, such as system-level testing, lead/ball scanner, marking, and tape and reel services. It serves customers in the personal computer, communications, consumer integrated circuits, and non-commodity memory semiconductor markets. The company has a strategic alliance with Tsinghua Unigroup Ltd. Siliconware Precision Industries Co., Ltd. was founded in 1984 and is headquartered in Taichung, Taiwan.

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