Analyzing Sumco (OTCMKTS:SUOPY) and GSI Technology (NASDAQ:GSIT)

Sumco (OTCMKTS:SUOPY) and GSI Technology (NASDAQ:GSIT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares Sumco and GSI Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumco	6.66%	4.15%	2.38%
GSI Technology	-66.67%	-46.39%	-37.43%

Valuation and Earnings

This table compares Sumco and GSI Technology’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumco	$3.04 billion	1.19	$453.58 million	$1.25	16.58
GSI Technology	$20.85 million	3.67	-$20.09 million	($0.80)	-3.76

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

Volatility & Risk

Sumco has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, GSI Technology has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Sumco and GSI Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumco	0	0	0	0	N/A
GSI Technology	0	0	0	0	N/A

Insider and Institutional Ownership

0.0% of Sumco shares are held by institutional investors. Comparatively, 33.2% of GSI Technology shares are held by institutional investors. 32.1% of GSI Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Sumco beats GSI Technology on 8 of the 11 factors compared between the two stocks.

About Sumco

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.

About GSI Technology

GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.