Financial Contrast: Dialog Semiconductor (OTCMKTS:DLGNF) and Lattice Semiconductor (NASDAQ:LSCC)

Dialog Semiconductor (OTCMKTS:DLGNF) and Lattice Semiconductor (NASDAQ:LSCC) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Dialog Semiconductor and Lattice Semiconductor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dialog Semiconductor	0	0	0	0	N/A
Lattice Semiconductor	0	3	8	0	2.73

Lattice Semiconductor has a consensus target price of $87.00, suggesting a potential upside of 14.88%. Given Lattice Semiconductor’s higher possible upside, analysts clearly believe Lattice Semiconductor is more favorable than Dialog Semiconductor.

Earnings & Valuation

This table compares Dialog Semiconductor and Lattice Semiconductor’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dialog Semiconductor	$1.38 billion	4.17	$84.50 million	$3.32	24.22
Lattice Semiconductor	$737.15 million	14.13	$259.06 million	$1.85	40.94

Lattice Semiconductor has lower revenue, but higher earnings than Dialog Semiconductor. Dialog Semiconductor is trading at a lower price-to-earnings ratio than Lattice Semiconductor, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Dialog Semiconductor has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, Lattice Semiconductor has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Profitability

This table compares Dialog Semiconductor and Lattice Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dialog Semiconductor	5.72%	16.55%	13.08%
Lattice Semiconductor	35.14%	36.07%	27.59%

Institutional and Insider Ownership

98.1% of Lattice Semiconductor shares are held by institutional investors. 1.2% of Lattice Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Lattice Semiconductor beats Dialog Semiconductor on 10 of the 13 factors compared between the two stocks.

About Dialog Semiconductor

Dialog Semiconductor Plc engages in the design, development, and marketing of integrated circuit (IC) products. It operates through the following segments: Custom Mixed Signal (CMS), Advanced Mixed Signal (AMS), Connectivity and Audio (C&A), and Industrial IoT. The CMS segment provides custom ICs designed to meet the needs of the customers in the mobile, industrial, automotive, computing and storage markets. The AMS segment offers standard products including CMICs, AC/DC converter solutions for smaller, fast charging power adaptors for portable devices as well as LED drivers for backlighting and solid state lighting products. The C&A segment includes standard products incorporating short-range wireless, digital cordless, Bluetooth low energy, VoIP, and low-power Wi-Fi technologies. The Industrial IoT segment consists of products enabling smart factory and building automation including non-volatile memory (NVM) ICs, industrial communication ICs, custom-designed ASICs and embedded systems, servers, and software. The company was founded in 1990 and is headquartered in Reading, the United Kingdom.

About Lattice Semiconductor

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Lattice Certus and ECP, Mach, iCE, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial, and automotive markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.