Disco (OTCMKTS:DSCSY – Get Free Report) and SemiLEDS (NASDAQ:LEDS – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Institutional & Insider Ownership
0.0% of Disco shares are held by institutional investors. Comparatively, 76.3% of SemiLEDS shares are held by institutional investors. 58.5% of SemiLEDS shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Disco and SemiLEDS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Disco | 32.04% | 27.68% | 21.83% |
| SemiLEDS | -3.92% | -43.09% | -6.39% |
Volatility and Risk
Disco has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, SemiLEDS has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.
Earnings & Valuation
This table compares Disco and SemiLEDS”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Disco | $2.90 billion | 10.55 | $894.45 million | $0.94 | 30.01 |
| SemiLEDS | $43.01 million | 0.46 | -$1.13 million | ($0.13) | -18.31 |
Disco has higher revenue and earnings than SemiLEDS. SemiLEDS is trading at a lower price-to-earnings ratio than Disco, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Disco and SemiLEDS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Disco | 0 | 0 | 1 | 1 | 3.50 |
| SemiLEDS | 1 | 0 | 0 | 0 | 1.00 |
Summary
Disco beats SemiLEDS on 11 of the 13 factors compared between the two stocks.
About Disco
DISCO Corporation develops and manufactures precision processing equipment and tools used in semiconductor and electronic-component production. Its products include grinding, dicing and polishing machines, along with the blades and other consumables used in those processes. The company’s technologies help manufacturers cut, thin and shape semiconductor wafers and other hard, brittle materials. DISCO serves customers in the global semiconductor industry and maintains operations and support for customers in markets around the world.
About SemiLEDS
SemiLEDs Corporation (NASDAQ: LEDS) develops, manufactures and sells light-emitting diode (LED) chips and related products. The company’s offerings are based on semiconductor technologies designed to convert electrical energy into light and have applications in general illumination, specialty lighting and other display or signaling uses. SemiLEDs has focused on high-brightness LED products, including chips that produce visible and ultraviolet light. Its operations have also included the development and manufacture of LED epitaxial wafers and chips, which are key components used by lighting and electronics manufacturers.
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