Analyzing United Microelectronics (NYSE:UMC) & Xilinx (NYSE:XLNX)

United Microelectronics (NYSE:UMC) and Xilinx (NASDAQ:XLNX) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares United Microelectronics and Xilinx’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Microelectronics 6.57% 4.78% 2.64%
Xilinx 27.05% 33.38% 17.96%

Earnings & Valuation

This table compares United Microelectronics and Xilinx’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Microelectronics $4.93 billion 1.31 $323.00 million N/A N/A
Xilinx $3.06 billion 7.33 $889.75 million $3.48 25.91

Xilinx has lower revenue, but higher earnings than United Microelectronics.

Dividends

United Microelectronics pays an annual dividend of $0.06 per share and has a dividend yield of 2.2%. Xilinx pays an annual dividend of $1.48 per share and has a dividend yield of 1.6%. Xilinx pays out 42.5% of its earnings in the form of a dividend. United Microelectronics has raised its dividend for 1 consecutive years and Xilinx has raised its dividend for 9 consecutive years.

Volatility and Risk

United Microelectronics has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Xilinx has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for United Microelectronics and Xilinx, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Microelectronics 0 5 6 0 2.55
Xilinx 1 12 7 0 2.30

Xilinx has a consensus target price of $108.28, indicating a potential upside of 20.08%. Given Xilinx’s higher probable upside, analysts plainly believe Xilinx is more favorable than United Microelectronics.

Institutional & Insider Ownership

5.3% of United Microelectronics shares are held by institutional investors. Comparatively, 84.1% of Xilinx shares are held by institutional investors. 8.0% of United Microelectronics shares are held by insiders. Comparatively, 0.2% of Xilinx 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.

Summary

Xilinx beats United Microelectronics on 11 of the 16 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation provides semiconductor wafer foundry solutions. The company operates through Wafer Fabrication and New Business segments. It provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. The company also engages in the research, development, and manufacture of products in the solar energy and light-emitting diode industries. It serves fabless design companies, and integrated device manufacturers. The company operates primarily in Taiwan, Singapore, China, Japan, Europe, and the United States. United Microelectronics Corporation was founded in 1980 and is headquartered in Hsinchu City, Taiwan.

About Xilinx

Xilinx, Inc. designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips, and three dimensional ICs; adaptive compute acceleration platform; software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards; and intellectual property (IP) core licenses covering Ethernet, memory controllers, Interlaken, and peripheral component interconnect express interfaces, as well as domain-specific IP in the areas of embedded, digital signal processing and connectivity, and market-specific IP cores. The company also offers development boards; development kits, including hardware, design tools, IP, and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications; and configuration products, such as one-time programmable and in-system programmable storage devices to configure field programmable gate arrays. In addition, it provides design, customer training, field engineering, and technical support services. The company offers its products to electronic equipment manufacturers in sub-segments, such as wireline and data center, wireless, aerospace and defense, test and measurement, industrial, scientific and medical, automotive, audio, video and broadcast, and consumer. Xilinx, Inc. sells its products through a network of independent distributors; and through direct sales to original equipment manufacturers and electronic manufacturing service providers, as well as independent sales representatives. The company has a strategic collaboration with ZF Friedrichshafen AG; and technology collaboration with Shenzhen Youjia Innovation Technology Co., Ltd. Xilinx, Inc. was founded in 1984 and is headquartered in San Jose, California.

Receive News & Ratings for United Microelectronics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Microelectronics and related companies with MarketBeat.com's FREE daily email newsletter.