Oclaro (NASDAQ:OCLR) and United Microelectronics (NYSE:UMC) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
This is a summary of current ratings for Oclaro and United Microelectronics, as reported by MarketBeat.com.
Oclaro currently has a consensus price target of $9.39, indicating a potential upside of 10.43%. United Microelectronics has a consensus price target of $2.60, indicating a potential upside of 11.11%. Given United Microelectronics’ higher possible upside, analysts plainly believe United Microelectronics is more favorable than Oclaro.
Volatility and Risk
Oclaro has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
United Microelectronics pays an annual dividend of $0.08 per share and has a dividend yield of 3.4%. Oclaro does not pay a dividend.
This table compares Oclaro and United Microelectronics’ net margins, return on equity and return on assets.
Institutional & Insider Ownership
69.3% of Oclaro shares are held by institutional investors. Comparatively, 5.4% of United Microelectronics shares are held by institutional investors. 2.0% of Oclaro shares are held by insiders. Comparatively, 8.0% of United Microelectronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Oclaro and United Microelectronics’ revenue, earnings per share and valuation.
United Microelectronics has higher revenue and earnings than Oclaro.
Oclaro beats United Microelectronics on 9 of the 14 factors compared between the two stocks.
Oclaro, Inc. designs, manufactures, and markets optical components, modules, and subsystems for the long-haul, metro, and data center markets worldwide. The company's products generate, detect, combine, and separate light signals in optical communications networks. It offers client side transceivers, including pluggable transceivers; line side transceivers; tunable laser transmitters, such as discrete lasers and co-packaged laser modulators; lithium niobate modulators to manipulate the phase or the amplitude of an optical signal; transponder modules for transmitter and receiver functions; and discrete lasers and receivers for metro and long-haul applications. The company markets its products through direct sales force, as well as through sales representatives and resellers. It serves network equipment manufacturers of telecommunications and datacom systems, hyperscale data center operators, and datacom module manufacturers. The company was formerly known as Bookham, Inc. and changed its name to Oclaro, Inc. in April 2009. Oclaro, Inc. was founded in 1988 and is headquartered in San Jose, California.
About United Microelectronics
United Microelectronics Corp. engages in the semiconductor foundry business. It offers complementary metal-oxide semiconductor (CMOS) logic wafers, mixed signal wafers, radio frequency complementary metal-oxide semiconductor wafers, embedded memory products, high voltage integrated circuits (ICs), and complementary metal-oxide semiconductor image sensors. The company was founded on May 22, 1980 and is headquartered in Hsinchu, Taiwan.