Comparing Investments: Intel (NASDAQ:INTC) vs. indie Semiconductor (NASDAQ:INDI)

On November 28th, 2024, we explore two significant players in the technology sector, indie Semiconductor (NASDAQ:INDI) and Intel (NASDAQ:INTC). Both companies specialize in computer technology, but how do they compare as investment options? We will evaluate them across several criteria, including risk, analyst recommendations, valuation, profitability, dividends, institutional ownership, and earnings.

Analyst Recommendations

To understand the market sentiment towards these companies, we analyzed their recent analyst recommendations, sourced from MarketBeat. Below is the summary of the current recommendations:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	0	0	7	0	3.00
Intel	5	25	1	0	1.87

indie Semiconductor has a consensus price target of $9.79, signaling a potential upside of 94.55%. On the other hand, Intel's consensus price target is $30.12, reflecting a potential upside of 27.34%. With a stronger consensus rating and a higher potential upside for indie Semiconductor, analysts generally consider it a more attractive option than Intel.

Institutional and Insider Ownership

Examining ownership structures, 67.7% of indie Semiconductor shares are owned by institutional investors, compared to 64.5% for Intel. Additionally, 8.2% of indie Semiconductor shares are held by insiders, whereas Intel has no insider ownership. A significant institutional ownership suggests that major investors see potential for long-term growth in a company.

Profitability Analysis

Profitability metrics, including net margins, return on equity, and return on assets provide insight into the financial health of each company. Here’s how they stack up:

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-49.88%	-24.04%	-14.42%
Intel	-29.42%	-1.71%	-0.97%

While both companies are currently operating at a loss, indie Semiconductor shows a more negative trend in these metrics compared to Intel.

Volatility and Risk Assessment

When considering the risk associated with these investments, indie Semiconductor has a beta of 1.22, indicating that it is 22% more volatile than the S&P 500. In contrast, Intel's beta stands at 1.03, making it 3% more volatile than the market. This suggests indie Semiconductor may present greater risk for investors.

Valuation and Earnings Overview

Comparing revenue, earnings per share, and valuation offers further insights:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$223.17 million	4.55	-$117.62 million	($0.67)	-7.51
Intel	$54.23 billion	1.88	$1.69 billion	($3.72)	-6.36

Intel clearly leads with greater revenue and profitability; however, indie Semiconductor trades at a lower price-to-earnings ratio, suggesting it may be relatively more affordable at present.

Conclusion

In this comparative analysis, indie Semiconductor performs better on 8 out of the 14 factors evaluated between the two companies.

About indie Semiconductor

indie Semiconductor, Inc. is a provider of automotive semiconductors and software solutions focused on advanced driver assistance systems (ADAS), autonomous vehicles, and various applications related to connected cars and electrification. Founded in 2007 and based in Aliso Viejo, California, the company offers a range of products including ultrasonic sensors, radar sensors, cameras, and LiDAR solutions.

About Intel

Intel Corporation is a global leader in designing, manufacturing, and selling computing-related products. Founded in 1968 and headquartered in Santa Clara, California, Intel offers a broad range of products and services, from central processing units (CPUs) to advanced driver assistance systems and autonomous driving solutions. The company operates multiple business segments, focusing on client computing, data centers, mobile technology, and more.

investment, technology, semiconductors