Hua Hong Semiconductor (OTCMKTS:HHUSF) and nLIGHT (NASDAQ:LASR) Financial Contrast

Hua Hong Semiconductor (OTCMKTS:HHUSF) and nLIGHT (NASDAQ:LASR) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Insider and Institutional Ownership

84.6% of nLIGHT shares are owned by institutional investors. 5.6% of nLIGHT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Hua Hong Semiconductor and nLIGHT’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hua Hong Semiconductor	N/A	N/A	N/A	N/A	N/A
nLIGHT	$214.71 million	2.47	-$54.58 million	($1.12)	-10.13

Hua Hong Semiconductor has higher earnings, but lower revenue than nLIGHT.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hua Hong Semiconductor and nLIGHT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hua Hong Semiconductor	1	0	0	0	1.00
nLIGHT	0	1	1	0	2.50

nLIGHT has a consensus target price of $13.00, suggesting a potential upside of 14.54%. Given nLIGHT’s stronger consensus rating and higher probable upside, analysts clearly believe nLIGHT is more favorable than Hua Hong Semiconductor.

Profitability

This table compares Hua Hong Semiconductor and nLIGHT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hua Hong Semiconductor	N/A	N/A	N/A
nLIGHT	-23.80%	-17.11%	-14.09%

Summary

nLIGHT beats Hua Hong Semiconductor on 6 of the 9 factors compared between the two stocks.

About Hua Hong Semiconductor

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products. The company provides embedded non-volatile memory, standard logic and mixed-signal, radio frequency, power management integrated circuits, power discrete, and automotive solutions. It also offers foundry services; and design services comprising standard and customized IP development, full-custom layout design, and customer-specific integrated solutions, as well as design support and tape out services. In addition, the company provides multi-project wafer services; mask making services; and backend services, such as in-house testing, backside processing and dicing, and backend turnkey services, as well as assembly and testing services. Further, it engages in real estate development. Its products are used in consumer electronics, communications, computing, industrial, and automotive markets in the People's Republic of China, North America, Europe, Japan, and other Asian countries. The company was founded in 1997 and is headquartered in Shanghai, the People's Republic of China. Hua Hong Semiconductor Limited is a subsidiary of Shanghai Alliance Investment Ltd.

About nLIGHT

nLIGHT, Inc. designs, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. It operates in two segments, Laser Products and Advanced Development. The company also provides fiber amplifiers, and beam combination and control systems for use in high-energy laser systems in directed energy applications. It sells its products through direct sales force in the United States, China, South Korea, and European countries, as well as through various independent sales representatives and distributors in Asia, Europe, and South America. The company was formerly known as nLight Photonics Corporation and changed its name to nLIGHT, Inc. in January 2016. nLIGHT, Inc. was incorporated in 2000 and is headquartered in Camas, Washington.