STMicroelectronics N.V. (STM) & NXP Semiconductors N.V. (NXPI) Financial Analysis

STMicroelectronics N.V. (NYSE: STM) and NXP Semiconductors N.V. (NASDAQ:NXPI) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Earnings & Valuation

This table compares STMicroelectronics N.V. and NXP Semiconductors N.V.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
STMicroelectronics N.V. $7.40 billion 2.30 $1.23 billion $0.50 38.38
NXP Semiconductors N.V. $9.32 billion 4.19 $2.70 billion $4.56 24.75

NXP Semiconductors N.V. has higher revenue and earnings than STMicroelectronics N.V.. NXP Semiconductors N.V. 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.

Profitability

This table compares STMicroelectronics N.V. and NXP Semiconductors N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
STMicroelectronics N.V. 5.97% 10.60% 6.01%
NXP Semiconductors N.V. 16.87% 16.15% 7.85%

Analyst Ratings

This is a breakdown of current ratings for STMicroelectronics N.V. and NXP Semiconductors N.V., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
STMicroelectronics N.V. 1 2 5 0 2.50
NXP Semiconductors N.V. 0 16 2 1 2.21

STMicroelectronics N.V. currently has a consensus price target of $18.17, suggesting a potential downside of 5.33%. NXP Semiconductors N.V. has a consensus price target of $110.83, suggesting a potential downside of 1.78%. Given NXP Semiconductors N.V.’s higher probable upside, analysts clearly believe NXP Semiconductors N.V. is more favorable than STMicroelectronics N.V..

Risk and Volatility

STMicroelectronics N.V. has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, NXP Semiconductors N.V. has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Insider and Institutional Ownership

5.3% of STMicroelectronics N.V. shares are held by institutional investors. Comparatively, 78.9% of NXP Semiconductors N.V. shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

STMicroelectronics N.V. pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. NXP Semiconductors N.V. does not pay a dividend. STMicroelectronics N.V. pays out 40.0% of its earnings in the form of a dividend.

Summary

NXP Semiconductors N.V. beats STMicroelectronics N.V. on 13 of the 16 factors compared between the two stocks.

About STMicroelectronics N.V.

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.

About NXP Semiconductors N.V.

NXP Semiconductors N.V. (NXP) is a holding company. The Company operates as a semiconductor company. The Company provides high performance mixed signal and standard product solutions. The Company’s segments are High Performance Mixed Signal (HPMS), Standard Products (SP), and Corporate and Other. Its product solutions are used in a range of end-market applications, including automotive, personal security and identification, wireless and wireline infrastructure, mobile communications, multi-market industrial, consumer and computing. It engages with global original equipment manufacturers (OEMs) and sells products in all geographic regions. NXP’s HPMS segment includes business lines, such as Automotive, Secure Identification Solutions (SIS), Secure Connected Devices (SCD), and Secure Interfaces and Infrastructure (SI&I). The Company’s SP segment supplies a range of standard semiconductor components, such as small signal discretes and power discretes.

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