Sigma Designs (NASDAQ: SIGM) and Switch (NYSE:SWCH) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
60.8% of Sigma Designs shares are owned by institutional investors. 4.5% of Sigma Designs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Sigma Designs and Switch’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Sigma Designs and Switch, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sigma Designs presently has a consensus target price of $7.50, indicating a potential upside of 29.31%. Switch has a consensus target price of $22.20, indicating a potential upside of 17.15%. Given Sigma Designs’ higher probable upside, equities analysts clearly believe Sigma Designs is more favorable than Switch.
Earnings & Valuation
This table compares Sigma Designs and Switch’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Sigma Designs||$220.54 million||1.01||-$18.31 million||($0.94)||-6.17|
|Switch||$318.35 million||14.75||$31.36 million||$0.13||145.77|
Switch has higher revenue and earnings than Sigma Designs. Sigma Designs is trading at a lower price-to-earnings ratio than Switch, indicating that it is currently the more affordable of the two stocks.
Switch beats Sigma Designs on 9 of the 12 factors compared between the two stocks.
About Sigma Designs
Sigma Designs, Inc. is a provider of global integrated semiconductor solutions. The Company offers media platforms for use in the home entertainment and home control markets. The Company sells its products into markets, including smart television, media connectivity, set-top box and Internet of Things (IoT) devices. The Company’s media processor product line consists of a range of functionally similar platforms that are based on integrated chips, embedded software and hardware reference designs. The Company’s media connectivity product line consists of wired home networking controller chipsets that are designed to provide connectivity solutions between various home entertainment products and incoming video streams. The Company’s IoT devices product line consists of its wireless Z-Wave chips and modules. The Company is engaged in the license of its internally developed intellectual property. It also offers legacy products that are sold into prosumer and other industrial applications.
Switch, Inc. is a technology infrastructure company. The Company is developer and operator of the SUPERNAP, data center facilities, and provides colocation, telecommunications, cloud services, and content ecosystems. The Company designs, constructs and operates hyperscale data centers that address the growing challenges facing the data center industry. The Company’s patented technologies include 100% hot aisle containment rows, exterior wall penetrating multi-mode HVAC units, hot and cold containment segregation structure, redundant data center roofing system, multi-system power containers, data center infrastructure management system (DCIM).
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