Critical Analysis: Global Technologies (OTCMKTS:GTLL) and Silicon Motion Technology (NASDAQ:SIMO)

Global Technologies (OTCMKTS:GTLL) and Silicon Motion Technology (NASDAQ:SIMO) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Institutional and Insider Ownership

78.0% of Silicon Motion Technology shares are owned by institutional investors. 27.7% of Global Technologies shares are owned by company insiders. Comparatively, 5.3% of Silicon Motion Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Technologies	17.88%	-153.32%	7.07%
Silicon Motion Technology	10.36%	10.14%	7.76%

Volatility & Risk

Global Technologies has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Silicon Motion Technology has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Global Technologies and Silicon Motion Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Technologies	0	0	0	0	0.00
Silicon Motion Technology	0	1	8	0	2.89

Silicon Motion Technology has a consensus price target of $96.43, suggesting a potential downside of 6.35%. Given Silicon Motion Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Silicon Motion Technology is more favorable than Global Technologies.

Earnings & Valuation

This table compares Global Technologies and Silicon Motion Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Technologies	$1.06 million	N/A	$810,000.00	N/A	N/A
Silicon Motion Technology	$803.55 million	4.35	$89.25 million	$2.37	43.45

Silicon Motion Technology has higher revenue and earnings than Global Technologies.

Summary

Silicon Motion Technology beats Global Technologies on 9 of the 11 factors compared between the two stocks.

About Global Technologies

Global Technologies, Ltd., through its subsidiaries, engages in the online sale of CBD and hemp related products in the United States. It is involved in sales and distribution, third-party logistics, and consulting services. The company engages in brick-and-mortar retail outlets and e-commerce related businesses. Global Technologies, Ltd. was incorporated in 1999 and is based in Parsippany, New Jersey.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. The company was founded in 1995 and is based in Hong Kong, Hong Kong.