Comparing Silicon Laboratories (NASDAQ:SLAB) & DSP Group (NASDAQ:DSPG)

Silicon Laboratories (NASDAQ:SLAB) and DSP Group (NASDAQ:DSPG) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

94.5% of Silicon Laboratories shares are owned by institutional investors. Comparatively, 84.2% of DSP Group shares are owned by institutional investors. 2.1% of Silicon Laboratories shares are owned by insiders. Comparatively, 7.7% of DSP Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Silicon Laboratories and DSP Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Silicon Laboratories 0 6 5 0 2.45
DSP Group 0 6 0 0 2.00

Silicon Laboratories currently has a consensus target price of $166.40, suggesting a potential upside of 15.93%. DSP Group has a consensus target price of $22.00, suggesting a potential upside of 0.82%. Given Silicon Laboratories’ stronger consensus rating and higher probable upside, analysts clearly believe Silicon Laboratories is more favorable than DSP Group.

Risk and Volatility

Silicon Laboratories has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, DSP Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares Silicon Laboratories and DSP Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Silicon Laboratories $886.68 million 7.25 $12.53 million $1.94 73.99
DSP Group $114.48 million 4.66 -$6.79 million $0.19 114.84

Silicon Laboratories has higher revenue and earnings than DSP Group. Silicon Laboratories is trading at a lower price-to-earnings ratio than DSP Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Silicon Laboratories and DSP Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Silicon Laboratories 5.12% 9.37% 5.84%
DSP Group -3.95% 5.56% 4.06%

Summary

Silicon Laboratories beats DSP Group on 13 of the 14 factors compared between the two stocks.

Silicon Laboratories Company Profile

Silicon Laboratories, Inc. designs and develops analog-intensive and mixed-signal integrated circuits. The firm offers microcontrollers, wireless, sensors, USB bridges, analog, clocks and oscillators, isolators, power, audio and radio, modems and TV and video product categories. It provides solutions for automotive, communications, data centers, healthcare & fitness, home automation & entertainment, industrial automation & power and retail industries. The company was founded by Navdeep S. Sooch, David R. Welland, and Jeffrey W. Scott in August 1996 and is headquartered in Austin, TX.

DSP Group Company Profile

DSP Group, Inc. provides wireless chipset solutions for converged communications. It operates through the following segments: Home, Unified Communications, and SmartVoice. The Home segment offers wireless chipset solutions at home. The Unified Communications segment provides office solutions that offer businesses of all sizes VoIP terminals with converged voice and data applications. The SmartVoice segment provides intelligent voice enhancement and noise elimination. The company was founded in 1987 and is headquartered in San Jose, CA.

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