Comparative Analysis: Wolfspeed vs. Semiconductor Manufacturing International

Wolfspeed (NYSE:WOLF) and Semiconductor Manufacturing International (OTCMKTS:SMICY) are both prominent players in the computer and technology sector, but how do they stack up against each other? This analysis aims to compare these two companies based on various factors, including risk assessment, valuation, profitability, earnings, analyst recommendations, institutional ownership, and dividends.

Valuation and Earnings

The following table summarizes the revenue and earnings figures for both companies:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wolfspeed	$804.50 million	1.23	-$864.20 million	($5.95)	-1.30
Semiconductor Manufacturing International	$3.12 billion	5.18	$234.68 million	$0.21	66.67

From the data, it is clear that Semiconductor Manufacturing International outperforms Wolfspeed in terms of both revenue and earnings. Despite this, Wolfspeed's price-to-earnings ratio is lower compared to Semiconductor Manufacturing International, suggesting that it may offer a more affordable investment option currently.

Analyst Ratings

The following table provides an overview of the analyst recommendations for both companies:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolfspeed	2	10	4	0	2.13
Semiconductor Manufacturing International	0	0	0	0	0.00

Currently, Wolfspeed has a consensus price target of $17.21, suggesting a potential upside of 122.12%. With a stronger consensus rating, analysts appear to favor Wolfspeed over Semiconductor Manufacturing International.

Volatility & Risk

When assessing volatility, Wolfspeed has a beta of 1.38, indicating it is 38% more volatile than the S&P 500. In contrast, Semiconductor Manufacturing International holds a beta of 0.7, showing it is 30% less volatile than the S&P 500.

Institutional and Insider Ownership

The percentage of shares held by institutional investors is notably low for Semiconductor Manufacturing International at 0.0%. Conversely, 0.8% of Wolfspeed shares are owned by company insiders, suggesting a sign of confidence from those within the company regarding its long-term growth potential.

Profitability

A comparison of profitability metrics is shown in the following table:

	Net Margins	Return on Equity	Return on Assets
Wolfspeed	-93.31%	-49.86%	-5.96%
Semiconductor Manufacturing International	14.53%	4.00%	2.62%

Here, Semiconductor Manufacturing International shows significantly better performance with positive net margins and returns on equity and assets when compared to Wolfspeed.

Conclusion

In conclusion, Semiconductor Manufacturing International outperforms Wolfspeed in 9 out of 14 analyzed factors, indicating that it may be the stronger business at this time.

About Wolfspeed

Wolfspeed, Inc. specializes in semiconductor technology, focusing primarily on silicon carbide and gallium nitride materials. The company provides products used in a variety of applications, including electric vehicles, telecommunications, and power supplies. Founded in 1987 and based in Durham, North Carolina, Wolfspeed was previously known as Cree, Inc.

About Semiconductor Manufacturing International

Semiconductor Manufacturing International Corporation operates in the semiconductor industry, specializing in integrated circuit design, manufacturing, and various services. The company, based in Shanghai, China, was founded in 2000 and provides a wide range of products and services to its clientele in North America and Asia.

Wolfspeed, SMICY, Investment