Financial Review: United Microelectronics (UMC) vs. Its Peers

United Microelectronics (NYSE:UMC – Get Free Report) is one of 220 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare United Microelectronics to similar companies based on the strength of its analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Valuation & Earnings

This table compares United Microelectronics and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
United Microelectronics $7.57 billion $1.29 billion 14.61
United Microelectronics Competitors $7.39 billion $2.55 billion 20.10

United Microelectronics has higher revenue, but lower earnings than its peers. United Microelectronics is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

United Microelectronics has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, United Microelectronics’ peers have a beta of 2.81, meaning that their average share price is 181% more volatile than the S&P 500.

Insider and Institutional Ownership

5.0% of United Microelectronics shares are held by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 8.0% of United Microelectronics shares are held by company insiders. Comparatively, 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for United Microelectronics and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Microelectronics 2 3 2 0 2.00
United Microelectronics Competitors 3516 12394 25844 1004 2.57

United Microelectronics currently has a consensus price target of $36.79, indicating a potential upside of 133.09%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 37.55%. Given United Microelectronics’ higher possible upside, analysts clearly believe United Microelectronics is more favorable than its peers.

Dividends

United Microelectronics pays an annual dividend of $0.31 per share and has a dividend yield of 2.0%. United Microelectronics pays out 28.7% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 28.8% of their earnings in the form of a dividend. United Microelectronics is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares United Microelectronics and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Microelectronics 31.96% 20.12% 13.53%
United Microelectronics Competitors -1,255.36% -126.08% -3.83%

Summary

United Microelectronics peers beat United Microelectronics on 8 of the 15 factors compared.

About United Microelectronics

(Get Free Report)

United Microelectronics Corporation (UMC) is a Taiwan-based semiconductor foundry that manufactures integrated circuits for other companies. It provides wafer fabrication and related services to fabless chip designers and integrated device manufacturers, rather than selling its own branded semiconductor products. Founded in 1980, UMC was Taiwan’s first semiconductor company. Its manufacturing and technology offerings serve applications including communications, consumer electronics, computing, automotive and industrial products.

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