Photronics (NASDAQ:PLAB – Get Free Report) and SiTime (NASDAQ:SITM – Get Free Report) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Profitability
This table compares Photronics and SiTime’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Photronics | 19.05% | 7.45% | 6.53% |
| SiTime | 3.87% | 9.07% | 6.15% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Photronics and SiTime, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Photronics | 0 | 2 | 3 | 1 | 2.83 |
| SiTime | 1 | 3 | 10 | 2 | 2.81 |
Photronics presently has a consensus target price of $49.33, indicating a potential upside of 80.31%. SiTime has a consensus target price of $687.00, indicating a potential upside of 64.78%. Given Photronics’ stronger consensus rating and higher possible upside, analysts clearly believe Photronics is more favorable than SiTime.
Earnings and Valuation
This table compares Photronics and SiTime”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Photronics | $849.29 million | 1.90 | $136.40 million | $2.84 | 9.63 |
| SiTime | $682.96 million | 18.36 | -$42.90 million | $0.94 | 443.53 |
Photronics has higher revenue and earnings than SiTime. Photronics is trading at a lower price-to-earnings ratio than SiTime, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Photronics has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, SiTime has a beta of 2.88, meaning that its share price is 188% more volatile than the S&P 500.
Insider and Institutional Ownership
88.4% of Photronics shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 3.3% of Photronics shares are owned by company insiders. Comparatively, 1.4% of SiTime shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Photronics beats SiTime on 9 of the 15 factors compared between the two stocks.
About Photronics
Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally. It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates. The company offers electrical and optical components. It sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut.
About SiTime
SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.
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