GSI Technology (NASDAQ:GSIT) versus SemiLEDs (NASDAQ:LEDS) Critical Survey

GSI Technology (NASDAQ:GSIT) and SemiLEDs (NASDAQ:LEDS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares GSI Technology and SemiLEDs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSI Technology 3.16% 1.83% 1.60%
SemiLEDs -60.58% -99.88% -29.88%

Institutional & Insider Ownership

33.6% of GSI Technology shares are owned by institutional investors. Comparatively, 0.5% of SemiLEDs shares are owned by institutional investors. 35.5% of GSI Technology shares are owned by company insiders. Comparatively, 39.8% of SemiLEDs shares are owned by company 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 Ratings

This is a breakdown of current ratings and recommmendations for GSI Technology and SemiLEDs, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSI Technology 0 1 0 0 2.00
SemiLEDs 0 0 0 0 N/A

Valuation and Earnings

This table compares GSI Technology and SemiLEDs’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GSI Technology $51.49 million 3.72 $160,000.00 N/A N/A
SemiLEDs $7.49 million 1.39 -$2.98 million N/A N/A

GSI Technology has higher revenue and earnings than SemiLEDs.

Risk & Volatility

GSI Technology has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, SemiLEDs has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500.

Summary

GSI Technology beats SemiLEDs on 7 of the 9 factors compared between the two stocks.

GSI Technology Company Profile

GSI Technology, Inc., a fabless semiconductor company, designs, develops, and markets memory products primarily for the networking and telecommunications markets in the United States, China, Singapore, the Netherlands, and internationally. It offers synchronous static random access memory (SRAM) products, such as BurstRAMs for microprocessor cache applications; No Bus Turnaround SRAMs to address the needs of moderate performance networking applications; SigmaQuad and SigmaDDR products that are double data rate and quad data rate synchronous SRAMs; and radiation-hardened SRAMs for aerospace and military applications, such as networking satellites and missiles. The company also provides low latency dynamic random access memory products. Its products are incorporated in a range of networking and telecommunications equipment, including core routers, multi-service access routers, universal gateways, enterprise edge routers, service provider edge routers, optical edge routers, fast Ethernet switches, wireless base stations, and network access equipment. The company markets its products through a network of independent sales representatives and distributors to original equipment manufacturers, as well as to military, industrial, test and measurement equipment, automotive, and medical markets. GSI Technology, Inc. was founded in 1995 and is headquartered in Sunnyvale, California.

SemiLEDs Company Profile

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips and LED components in the United States, Taiwan, the Netherlands, France, China, Germany, Hong Kong, and internationally. The company's products are used for general lighting applications, including street lights and commercial, industrial, system and residential lighting. Its LED chips also used in specialty industrial applications, such as ultraviolet, or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. The company also sells enhanced vertical, LED product series in blue, white, green, and UV in selected markets; LED chips to packagers or to distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packages and sells its LED chips into LED components to distributors. SemiLEDs Corporation was incorporated in 2005 and is headquartered in Chunan, Taiwan.

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