Head-To-Head Comparison: AXT (NASDAQ:AXTI) vs. Dialog Semiconductor (OTCMKTS:DLGNF)

AXT (NASDAQ:AXTI) and Dialog Semiconductor (OTCMKTS:DLGNF) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares AXT and Dialog Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AXT 10.79% 6.47% 4.46%
Dialog Semiconductor 5.72% 16.55% 13.08%

Volatility & Risk

AXT has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500. Comparatively, Dialog Semiconductor has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.

Institutional and Insider Ownership

58.3% of AXT shares are held by institutional investors. 8.3% of AXT shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares AXT and Dialog Semiconductor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AXT $95.36 million 3.89 $3.24 million $0.32 27.13
Dialog Semiconductor $1.38 billion 4.17 $84.50 million $3.32 24.22

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

Analyst Ratings

This is a summary of current ratings and target prices for AXT and Dialog Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AXT 0 1 4 0 2.80
Dialog Semiconductor 0 6 1 0 2.14

AXT presently has a consensus price target of $15.00, indicating a potential upside of 72.81%. Given AXT’s stronger consensus rating and higher probable upside, equities analysts clearly believe AXT is more favorable than Dialog Semiconductor.

Summary

AXT beats Dialog Semiconductor on 8 of the 14 factors compared between the two stocks.

About AXT

AXT, Inc. engages in the design, development, manufacture and distribution of compound and single element semiconductor substrates. It also sells specialty material substrates and raw materials used to make substrates and other related products. The company was founded by Morris S. Young and Davis Zhang in December 1986 and is headquartered in Fremont, CA.

About Dialog Semiconductor

Dialog Semiconductor Plc engages in the design, development, and marketing of integrated circuit (IC) products. It operates through the following segments: Custom Mixed Signal (CMS), Advanced Mixed Signal (AMS), Connectivity and Audio (C&A), and Industrial IoT. The CMS segment provides custom ICs designed to meet the needs of the customers in the mobile, industrial, automotive, computing and storage markets. The AMS segment offers standard products including CMICs, AC/DC converter solutions for smaller, fast charging power adaptors for portable devices as well as LED drivers for backlighting and solid state lighting products. The C&A segment includes standard products incorporating short-range wireless, digital cordless, Bluetooth low energy, VoIP, and low-power Wi-Fi technologies. The Industrial IoT segment consists of products enabling smart factory and building automation including non-volatile memory (NVM) ICs, industrial communication ICs, custom-designed ASICs and embedded systems, servers, and software. The company was founded in 1990 and is headquartered in Reading, the United Kingdom.

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