Financial Survey: Wolfspeed (NYSE:WOLF) and Lattice Semiconductor (NASDAQ:LSCC)

Wolfspeed (NYSE:WOLFGet Free Report) and Lattice Semiconductor (NASDAQ:LSCCGet Free Report) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Wolfspeed and Lattice Semiconductor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wolfspeed 1 9 4 0 2.21
Lattice Semiconductor 0 2 9 0 2.82

Wolfspeed currently has a consensus target price of $36.36, suggesting a potential upside of 54.12%. Lattice Semiconductor has a consensus target price of $82.09, suggesting a potential upside of 40.18%. Given Wolfspeed’s higher possible upside, research analysts clearly believe Wolfspeed is more favorable than Lattice Semiconductor.

Profitability

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

Net Margins Return on Equity Return on Assets
Wolfspeed -96.12% -27.37% -4.78%
Lattice Semiconductor 31.42% 28.61% 23.07%

Valuation and Earnings

This table compares Wolfspeed and Lattice Semiconductor’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wolfspeed $921.90 million 3.22 -$329.90 million ($6.46) -3.65
Lattice Semiconductor $737.15 million 10.93 $259.06 million $1.56 37.54

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

Insider & Institutional Ownership

98.1% of Lattice Semiconductor shares are owned by institutional investors. 0.6% of Wolfspeed shares are owned by insiders. Comparatively, 1.8% of Lattice Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Wolfspeed has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Lattice Semiconductor has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Summary

Lattice Semiconductor beats Wolfspeed on 11 of the 14 factors compared between the two stocks.

About Wolfspeed

(Get Free Report)

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.

About Lattice Semiconductor

(Get Free Report)

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.

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