Financial Analysis: Atmel (ATML) & The Competition

Atmel (NASDAQ: ATML) is one of 99 publicly-traded companies in the “Semiconductors” industry, but how does it contrast to its rivals? We will compare Atmel to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Earnings and Valuation

This table compares Atmel and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Atmel N/A N/A 135.67
Atmel Competitors $4.38 billion $573.56 million 39.87

Atmel’s rivals have higher revenue and earnings than Atmel. Atmel is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

65.1% of shares of all “Semiconductors” companies are owned by institutional investors. 6.7% of shares of all “Semiconductors” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Atmel pays an annual dividend of $0.08 per share and has a dividend yield of 1.0%. Atmel pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Semiconductors” companies pay a dividend yield of 1.6% and pay out 61.0% of their earnings in the form of a dividend. Atmel lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of current ratings for Atmel and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atmel 0 0 0 0 N/A
Atmel Competitors 922 4736 8646 367 2.58

As a group, “Semiconductors” companies have a potential upside of 3.92%. Given Atmel’s rivals higher possible upside, analysts clearly believe Atmel has less favorable growth aspects than its rivals.

Profitability

This table compares Atmel and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atmel 1.81% 2.18% 1.48%
Atmel Competitors -44.05% 1.11% 1.12%

Risk and Volatility

Atmel has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Atmel’s rivals have a beta of 1.02, suggesting that their average stock price is 2% more volatile than the S&P 500.

Summary

Atmel rivals beat Atmel on 6 of the 11 factors compared.

About Atmel

Atmel Corporation supplies microcontrollers. The Company operates through four segments: Microcontroller, Nonvolatile Memory, Automotive and Multi-Market and Other. The Microcontroller segment includes its microcontroller and microprocessor families; AVR 8-bit and 32-bit products; Atmel SMART ARM-based products; designated commercial wireless products, including low power radio and System-on-a-chip products; optimized products for smart energy, touch button, and mobile sensor hub and Light Emitting Diode (LED) lighting applications, and maXTouch capacitive touch product families. The Nonvolatile Memory segment includes electrically erasable programmable read-only, erasable programmable read-only memory devices and secure cryptographic products. The Automotive segment includes devices for automotive electronics, including products using radio frequency technology. The Multi-Market and Other segment includes application specific and standard products for aerospace applications.

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