GlobalFoundries Inc. (GFS) vs Semtech Corporation (SMTC)

GlobalFoundries Inc. and Semtech Corporation are both Semiconductors companies. GlobalFoundries Inc. is the larger, with a market value of $26.3B against $16.9B — 1.6× the size. GlobalFoundries Inc. trades at the lower P/E: 37.7× against 110×. Semtech Corporation grew revenue faster over the last twelve months: 17.8% against 1.40%. Semtech Corporation has the higher net margin (13.1% vs 10.3%) and the higher return on invested capital (5.68% vs 4.51%). Across the 21 metrics below, GlobalFoundries Inc. leads on 13 and Semtech Corporation on 8.

Valuation

Metric GFS SMTC Semiconductors median
P/E 37.69 109.82 49.41
P/S 3.88 14.48 8.58
P/B 2.27 22.71 5.49
Price to free cash flow 37.84 92.45 47.02
EV/EBITDA 12.98 120.12 30.78
EV/Sales 3.77 14.73 8.79
Earnings yield 2.65% 0.91% 0.62%
Free cash flow yield 2.64% 1.08% 0.59%

Profitability

Metric GFS SMTC Semiconductors median
Gross margin 27.14% 52.12% 52.25%
Operating margin 11.59% 8.04% 4.85%
Net margin 10.32% 13.12% 4.77%
Free cash flow margin 13.07% 15.66% 8.65%
Return on equity 6.13% 23.66% 3.11%
Return on assets 4.25% 10.09% 1.91%
Return on invested capital 4.51% 5.68% 2.46%

Growth

Metric GFS SMTC Semiconductors median
Revenue growth (TTM) 1.40% 17.84% 16.66%
EPS growth (last fiscal year) 431.25% 79.65% —
Revenue growth, 5-year CAGR 6.96% 12.03% 5.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GFS SMTC Semiconductors median
Debt to equity 0.14 0.66 0.05
Current ratio 2.48 1.70 3.35
Net debt to EBITDA (0.68) 3.54 0.58

Dividend

Metric GFS SMTC Semiconductors median
Dividend yield — — 1.93%
Payout ratio 0.00 0.00 0.00

Size

Metric GFS SMTC Semiconductors median
Market cap 26.27b 16.85b 5.67b

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