SK hynix (SKHY) versus The Competition Critical Review

SK hynix (NASDAQ:SKHY) is one of 220 publicly-traded companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare SK hynix to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.

Dividends

SK hynix pays an annual dividend of $0.07 per share and has a dividend yield of 0.0%. SK hynix pays out 0.6% of its earnings in the form of a dividend. As a group, “Semiconductors & Semiconductor Equipment” companies pay a dividend yield of 0.9% and pay out 29.7% of their earnings in the form of a dividend.

Profitability

This table compares SK hynix and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SK hynix	N/A	N/A	N/A
SK hynix Competitors	-1,255.44%	-126.13%	-3.87%

Insider and Institutional Ownership

54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares SK hynix and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SK hynix	$68.39 billion	$30.04 billion	11.26
SK hynix Competitors	$9.85 billion	$2.53 billion	8.76

SK hynix has higher revenue and earnings than its peers. SK hynix is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SK hynix and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SK hynix	0	2	10	4	3.12
SK hynix Competitors	3512	12380	25827	1004	2.57

SK hynix currently has a consensus target price of $247.80, suggesting a potential upside of 74.20%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 35.55%. Given SK hynix’s stronger consensus rating and higher probable upside, research analysts clearly believe SK hynix is more favorable than its peers.

Summary

SK hynix beats its peers on 11 of the 14 factors compared.

SK hynix Company Profile

SK hynix is a South Korean semiconductor company that develops and manufactures memory products for use in computers, mobile devices, data centers and other electronics. Its principal products include dynamic random-access memory (DRAM), NAND flash memory and high-bandwidth memory (HBM), as well as complementary metal-oxide-semiconductor (CMOS) image sensors. The company’s memory products support applications ranging from personal computing and smartphones to servers, artificial intelligence systems and automotive electronics.