Financial Survey: Sigma Designs (OTCMKTS:SIGM) vs. Advantest (OTCMKTS:ATEYY)

Sigma Designs (OTCMKTS:SIGM) and Advantest (OTCMKTS:ATEYY) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

0.0% of Advantest shares are held by institutional investors. 4.5% of Sigma Designs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Sigma Designs and Advantest’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sigma Designs	$65.90 million	N/A	-$120.04 million	N/A	N/A
Advantest	$4.15 billion	5.12	$964.96 million	$5.14	22.09

Advantest has higher revenue and earnings than Sigma Designs.

Profitability

This table compares Sigma Designs and Advantest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sigma Designs	N/A	N/A	N/A
Advantest	23.32%	38.41%	23.38%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sigma Designs and Advantest, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sigma Designs	0	0	0	0	N/A
Advantest	0	1	0	0	2.00

Volatility and Risk

Sigma Designs has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Advantest has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Summary

Advantest beats Sigma Designs on 7 of the 8 factors compared between the two stocks.

About Sigma Designs

Sigma Designs, Inc., an integrated system-on-chip solutions provider, provides intelligent platforms for use in the home entertainment, and home and industrial control appliances. The company offers mobile Internet of Things solutions used primarily for tracking applications, such as small tags that can be attached to track pets, keys, children, luggage, and vehicles. It also offers legacy products; and software development kits and engineering support services for hardware and software. The company markets and sells its products through direct sales force, manufacturer representatives, distributors, and resellers to end-product manufacturers, original equipment manufacturers, and original design manufacturers in Asia, North America, Europe, and internationally. Sigma Designs, Inc. was founded in 1982 and is headquartered in Fremont, California.

About Advantest

Advantest Corporation manufactures and sells semiconductors, component test system products, and mechatronics systems in Japan, the United States, Europe, and Asia. The company operates through three segments: Semiconductor and Component Test System; Mechatronics Related Business; and Service and other departments. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry, as well as offers test systems for SoC semiconductor devices, and test systems for memory semiconductors devices. The Mechatronics Related Business segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured, as well as nano-technology related products. The Service And Other Departments segment provides test solutions of system level testing customer solutions for the semiconductor and modules, and support services. This segment is also involved in the sale of consumables and used products, and equipment lease business, and others. It also engages in the research and development activities and provides maintenance and support services. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.