Diodes (NASDAQ:DIOD) & United Microelectronics (NYSE:UMC) Head to Head Contrast

United Microelectronics (NYSE:UMC – Get Free Report) and Diodes (NASDAQ:DIOD – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Risk & Volatility

United Microelectronics has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, Diodes has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Valuation & Earnings

This table compares United Microelectronics and Diodes”s top-line revenue, earnings per share and valuation.

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

Institutional & Insider Ownership

5.0% of United Microelectronics shares are owned by institutional investors. Comparatively, 99.2% of Diodes shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by company insiders. Comparatively, 1.7% of Diodes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares United Microelectronics and Diodes’ net margins, return on equity and return on assets.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for United Microelectronics and Diodes, as provided by MarketBeat.com.

United Microelectronics currently has a consensus target price of $8.60, indicating a potential downside of 64.63%. Diodes has a consensus target price of $135.00, indicating a potential upside of 40.86%. Given Diodes’ stronger consensus rating and higher probable upside, analysts plainly believe Diodes is more favorable than United Microelectronics.

About United Microelectronics

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United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

About Diodes

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Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors. It also provides analog products, including power management devices comprising AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices consisting of operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, such as hall-effect sensors and motor drivers. In addition, the company offers mixed-signal products, such as high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches; standard logic products comprising low-voltage complementary metal-oxide-semiconductor (CMOS) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches; multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages; and silicon and silicon epitaxial wafers used in manufacturing frequency control products and contact images sensors. It serves the industrial, automotive, computing, communications, and consumer markets through direct sales, marketing personnel, independent sales representatives, and distributors. The company was incorporated in 1959 and is headquartered in Plano, Texas.