Comparing Silicon Laboratories (NASDAQ:SLAB) & Netlist (NASDAQ:NLST)

Netlist (OTCMKTS:NLST) and Silicon Laboratories (NASDAQ:SLAB) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Netlist and Silicon Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Netlist -27.91% N/A -49.89%
Silicon Laboratories 1.86% 8.89% 5.62%

Earnings & Valuation

This table compares Netlist and Silicon Laboratories’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Netlist $26.10 million 3.57 -$12.45 million ($0.08) -6.44
Silicon Laboratories $837.55 million 5.04 $19.26 million $2.15 44.97

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

Institutional & Insider Ownership

0.0% of Netlist shares are held by institutional investors. Comparatively, 92.0% of Silicon Laboratories shares are held by institutional investors. 6.9% of Netlist shares are held by company insiders. Comparatively, 2.3% of Silicon Laboratories shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Netlist and Silicon Laboratories, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netlist 0 1 0 0 2.00
Silicon Laboratories 0 2 6 0 2.75

Netlist currently has a consensus target price of $0.30, indicating a potential downside of 41.79%. Silicon Laboratories has a consensus target price of $113.71, indicating a potential upside of 17.62%. Given Silicon Laboratories’ stronger consensus rating and higher possible upside, analysts clearly believe Silicon Laboratories is more favorable than Netlist.

Volatility and Risk

Netlist has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Silicon Laboratories has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Summary

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

About Netlist

Netlist, Inc. designs, manufactures, and sells modular memory subsystems for the server, high-performance computing, and communications markets worldwide. It offers Hybri dual in-line memory module (DIMM), a storage class memory product, which unifies dynamic random access memory (DRAM)and NAND flash in a plug-and-play module delivering terabyte storage capacities operating at nanosecond memory speeds. The company also provides nonvolatile (NV) memory products, such as EXPRESSvault PCIe, a plug-and-play memory card, which offers data acceleration and data protection for server appliances; NVvault DDR3 NVDIMM comprising data acceleration and data protection in a joint electron device engineering council (JEDEC)standard DD3 interface for integration into industry-standard server and storage solutions; NVvault DDR4 NVDIMM, which provides data acceleration and data protection in a JEDEC standard DDR4 interface; and specialty DIMMs and embedded flash products for use in data center and industrial applications. In addition, it resells Samsung products; and sells component inventory of DRAM ICs and NAND flash to distributors and other users of memory integrated circuits. The company markets and sells its products primarily to original equipment manufacturers through a direct sales force and a network of independent sales representatives. Netlist, Inc. was founded in 2000 and is headquartered in Irvine, California.

About Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, designs, develops, and markets mixed-signal integrated circuits (ICs) in the United States, China, and internationally. The company offers Internet of things products, including 8-bit mixed-signal, 32-bit wireless, and ultra-low-power 32-bit microcontrollers; wireless connectivity devices, such as multiprotocol wireless Gecko system-on-chip devices; real-time operating systems; sensor products comprising optical, relative humidity/temperature, and hall effect magnetic sensors. It also provides infrastructure products, such as timing devices; multi-channel isolators, isolated drivers, isolated power converters, and mixed-signal devices; broadcast products, which include single-chip hybrid TV tuners and analog TV demodulators, as well as AM/FM, HD radio, and DAB/DAB+ receivers; and radio ICs. In addition, the company provides access products comprising ProSLIC subscriber line interface circuits for voice over IP; ISOmodem embedded modems; and Power over Ethernet power source equipment and powered device ICs. It primarily markets its products to Internet of Things, Internet infrastructure, industrial automation, consumer, and automotive markets through direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

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