SCI Engineered Materials (OTCMKTS:SCIA – Get Free Report) and Diodes (NASDAQ:DIOD – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Risk & Volatility
SCI Engineered Materials has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Diodes has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.
Earnings & Valuation
This table compares SCI Engineered Materials and Diodes”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SCI Engineered Materials | $19.61 million | 1.80 | $1.75 million | $0.41 | 19.39 |
| Diodes | $1.48 billion | 3.09 | $66.14 million | $1.84 | 54.16 |
Diodes has higher revenue and earnings than SCI Engineered Materials. SCI Engineered Materials is trading at a lower price-to-earnings ratio than Diodes, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SCI Engineered Materials and Diodes’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SCI Engineered Materials | 7.82% | 13.46% | 10.17% |
| Diodes | 5.50% | 3.48% | 2.74% |
Insider and Institutional Ownership
27.6% of SCI Engineered Materials shares are owned by institutional investors. Comparatively, 99.2% of Diodes shares are owned by institutional investors. 19.3% of SCI Engineered Materials shares are owned by insiders. Comparatively, 1.7% of Diodes shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for SCI Engineered Materials and Diodes, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SCI Engineered Materials | 0 | 0 | 0 | 0 | 0.00 |
| Diodes | 0 | 1 | 3 | 1 | 3.00 |
Diodes has a consensus price target of $113.00, indicating a potential upside of 13.40%. Given Diodes’ stronger consensus rating and higher possible upside, analysts clearly believe Diodes is more favorable than SCI Engineered Materials.
Summary
Diodes beats SCI Engineered Materials on 11 of the 15 factors compared between the two stocks.
About SCI Engineered Materials
SCI Engineered Materials, Inc. engages in the manufacture and supply of materials for physical vapor deposition thin film applications in the United States. It offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, thin film solar, flat panel displays, defense, aerospace, and photonics industries. The company’s materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. It serves domestic and multi-national corporations, universities, and research institutions. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.
About Diodes
Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.
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