Comparing STMicroelectronics N.V. (STM) and Integrated Device Technology (IDTI)

Integrated Device Technology (NASDAQ: IDTI) and STMicroelectronics N.V. (NYSE:STM) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitabiliy, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Integrated Device Technology and STMicroelectronics N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Integrated Device Technology 15.17% 21.80% 14.01%
STMicroelectronics N.V. 4.37% 8.14% 4.62%

Valuation and Earnings

This table compares Integrated Device Technology and STMicroelectronics N.V.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Integrated Device Technology $728.24 million 4.47 $161.51 million $0.80 30.63
STMicroelectronics N.V. $7.18 billion 1.87 $1.11 billion $0.36 42.28

STMicroelectronics N.V. has higher revenue and earnings than Integrated Device Technology. Integrated Device Technology is trading at a lower price-to-earnings ratio than STMicroelectronics N.V., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

95.0% of Integrated Device Technology shares are held by institutional investors. Comparatively, 5.2% of STMicroelectronics N.V. shares are held by institutional investors. 1.4% of Integrated Device Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Integrated Device Technology has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, STMicroelectronics N.V. has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Integrated Device Technology and STMicroelectronics N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Integrated Device Technology 1 3 11 0 2.67
STMicroelectronics N.V. 2 4 3 0 2.11

Integrated Device Technology presently has a consensus target price of $27.00, suggesting a potential upside of 10.20%. STMicroelectronics N.V. has a consensus target price of $20.00, suggesting a potential upside of 31.41%. Given STMicroelectronics N.V.’s higher probable upside, analysts clearly believe STMicroelectronics N.V. is more favorable than Integrated Device Technology.

Dividends

STMicroelectronics N.V. pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Integrated Device Technology does not pay a dividend. STMicroelectronics N.V. pays out 55.6% of its earnings in the form of a dividend.

Summary

Integrated Device Technology beats STMicroelectronics N.V. on 11 of the 16 factors compared between the two stocks.

Integrated Device Technology Company Profile

Integrated Device Technology, Inc. develops system-level solutions that optimize its customers’ applications. The Company operates through two segments: the Communications, and the Computing, Consumer and Industrial. It offers products in radio frequency (RF), timing, wireless power transfer, serial switching, interfaces and sensing solutions. It offers a range of mixed-signal solutions for the communications, computing, consumer, automotive and industrial segments. These products are used for development in areas, such as fourth generation (4G) infrastructure, network communications, cloud datacenters and power management for computing and mobile devices. It offers solutions in designing communications, computing, consumer, automotive and industrial applications. It markets its products to original equipment manufacturers (OEMs) through a range of channels, including direct sales, distributors and electronic manufacturing suppliers (EMSs).

STMicroelectronics N.V. Company Profile

STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company’s segments include Automotive and Discrete Group (ADG), Analog and MEMS Group (AMG), Microcontrollers and Digital ICs Group (MDG), and Others. ADG comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. AMG includes low-power analog ICs for all markets; smart power products; Touch Screen Controllers; Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products. MDG comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories. The Others segment includes all the financial values related to the Imaging Product Division, Subsystems and other products.

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