Nlight (NASDAQ:LASR) and Silicon Motion Technology (NASDAQ:SIMO) Financial Survey

Nlight (NASDAQ:LASR) and Silicon Motion Technology (NASDAQ:SIMO) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Profitability

This table compares Nlight and Silicon Motion Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nlight 0.11% 0.09% 0.08%
Silicon Motion Technology 14.08% 12.22% 10.02%

Analyst Ratings

This is a summary of recent ratings for Nlight and Silicon Motion Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nlight 0 2 3 0 2.60
Silicon Motion Technology 1 4 6 0 2.45

Nlight presently has a consensus price target of $20.40, suggesting a potential downside of 1.07%. Silicon Motion Technology has a consensus price target of $54.11, suggesting a potential upside of 13.63%. Given Silicon Motion Technology’s higher possible upside, analysts clearly believe Silicon Motion Technology is more favorable than Nlight.

Volatility & Risk

Nlight has a beta of 2.45, indicating that its share price is 145% more volatile than the S&P 500. Comparatively, Silicon Motion Technology has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nlight and Silicon Motion Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nlight $191.36 million 4.07 $13.94 million $0.32 64.44
Silicon Motion Technology $457.25 million 3.76 $64.40 million $1.82 26.16

Silicon Motion Technology has higher revenue and earnings than Nlight. Silicon Motion Technology is trading at a lower price-to-earnings ratio than Nlight, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

81.1% of Nlight shares are owned by institutional investors. Comparatively, 72.4% of Silicon Motion Technology shares are owned by institutional investors. 5.8% of Nlight shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Silicon Motion Technology beats Nlight on 8 of the 14 factors compared between the two stocks.

Nlight Company Profile

nLIGHT, Inc. designs, develops, and manufactures semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets. The company also produces optical fiber products. It markets and sells its products to original equipment manufacturer primarily through direct sales force in the United States, China, South Korea, Germany, and Finland, as well as through various independent sales representatives and distributors in Asia and Europe. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was founded in 2000 and is headquartered in Vancouver, Washington.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets semiconductor solutions for the mobile and enterprise storage, and mobile communications markets worldwide. It offers embedded storage and expandable storage products, including NAND flash controllers, such as embedded multimediacard (eMMC), universal flash storage, client solid-state drive (SSD), secure digital card, flash memory card controller, and universal serial bus flash drive controller products. The company also provides specialty storage solutions, such as customized enterprise-grade peripheral component interconnect express SSDs; and industrial-grade and commercial-grade single-chip SSDs. In addition, it offers specialty radio frequency integrated circuits (RF ICs), such as mobile TV system-on-chips (SoCs) and low power WiFi SoCs. The company's products are used in smartphones, tablets, digital cameras, camcorders, and desktop and notebook PCs, as well as in industrial, enterprise, commercial, and other applications. It offers its controllers under the SMI brand; enterprise-grade SSDs under the Shannon brand; single-chip industrial-grade SSDs under the Ferri SSD and Ferri-eMMC brands; RF ICs under the FCI brand; and software-defined storage products under the Bigtera brand. The company markets and sells its products through direct sales personnel and independent electronics distributors to flash manufacturers, original equipment manufacturers, and module makers. Silicon Motion Technology Corporation was founded in 1995 and is based in Kowloon, Hong Kong.

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