Performance Comparison: Intel And Competitors In Semiconductors & Semiconductor Equipment Industry

In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Intel INTC against its key competitors in the Semiconductors & Semiconductor Equipment industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.

Intel Background

Intel is a leading digital chipmaker, focused on the design and manufacturing of microprocessors for the global personal computer and data center markets. Intel pioneered the x86 architecture for microprocessors and was the prime proponent of Moore's law for advances in semiconductor manufacturing. Intel remains the market share leader in central processing units in both the PC and server end markets. Intel has also been expanding into new adjacencies, such as communications infrastructure, automotive, and the Internet of Things. Further, Intel expects to leverage its chip manufacturing capabilities into an outsourced foundry model where it constructs chips for others.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Intel Corp 123.88 1.98 3.85 0.29% $2.6 $6.02 -7.69%
NVIDIA Corp 81.48 45.86 34.27 30.42% $10.96 $13.4 205.51%
Broadcom Inc 37.29 24 14.66 15.3% $5.3 $6.41 4.09%
Advanced Micro Devices Inc 1639.36 5.30 13.24 0.54% $1.13 $2.75 4.22%
Qualcomm Inc 23.69 8 4.86 7.05% $2.06 $4.75 -24.26%
Texas Instruments Inc 23.68 9.01 8.75 8.18% $1.98 $2.43 -10.04%
Analog Devices Inc 30.12 2.75 8.11 1.39% $1.18 $1.65 -16.36%
ARM Holdings PLC 420.94 15.87 26.70 -2.45% $-0.12 $0.76 27.94%
Microchip Technology Inc 19.66 6.96 5.54 9.66% $1.1 $1.53 8.74%
STMicroelectronics NV 10.22 2.46 2.49 7.28% $1.69 $2.11 2.55%
GLOBALFOUNDRIES Inc 23.37 3.04 4.32 2.34% $0.64 $0.53 -10.7%
ON Semiconductor Corp 14.65 4.18 3.91 8.05% $0.87 $1.03 -0.54%
ASE Technology Holding Co Ltd 17.70 2.20 1.08 3.06% $28.07 $24.92 -18.27%
United Microelectronics Corp 9.30 1.85 2.74 4.72% $29.0 $20.46 -24.3%
Skyworks Solutions Inc 17.46 2.81 3.60 4.09% $0.4 $0.48 -13.37%
First Solar Inc 33.76 2.53 5.06 4.35% $0.37 $0.38 27.37%
Lattice Semiconductor Corp 44 14.74 12.60 8.96% $0.07 $0.13 11.4%
Universal Display Corp 41.48 6.13 14.49 3.77% $0.06 $0.11 -12.13%
Rambus Inc 27.95 8.24 17.51 10.86% $0.12 $0.08 -6.19%
MACOM Technology Solutions Holdings Inc 70.06 6.82 9.89 2.63% $0.05 $0.09 -15.59%
Allegro Microsystems Inc 21.22 4.84 5.01 6.18% $0.09 $0.16 15.92%
Average 130.37 8.88 9.94 6.82% $4.25 $4.21 7.8%

When conducting a detailed analysis of Intel, the following trends become clear:

  • With a Price to Earnings ratio of 123.88, which is 0.95x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.

  • Considering a Price to Book ratio of 1.98, which is well below the industry average by 0.22x, the stock may be undervalued based on its book value compared to its peers.

  • Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 3.85, which is 0.39x the industry average.

  • With a Return on Equity (ROE) of 0.29% that is 6.53% below the industry average, it appears that the company exhibits potential inefficiency in utilizing equity to generate profits.

  • Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $2.6 Billion, which is 0.61x below the industry average, potentially indicating lower profitability or financial challenges.

  • The gross profit of $6.02 Billion is 1.43x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.

  • The company is witnessing a substantial decline in revenue growth, with a rate of -7.69% compared to the industry average of 7.8%, which indicates a challenging sales environment.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

By evaluating Intel against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:

  • Intel demonstrates a stronger financial position compared to its top 4 peers in the sector.

  • With a lower debt-to-equity ratio of 0.48, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.

Key Takeaways

Intel's PE, PB, and PS ratios are all low compared to its peers in the Semiconductors & Semiconductor Equipment industry. This suggests that Intel's stock price is relatively undervalued compared to its earnings, book value, and sales. On the other hand, Intel's ROE, EBITDA, and revenue growth are all low, indicating that the company's profitability and growth potential are below average compared to its industry peers. However, Intel's gross profit is high, suggesting that the company is able to generate a significant amount of profit from its sales.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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