Analyzing GCT Semiconductor (GCTS) & The Competition

GCT Semiconductor (NYSE:GCTS) is one of 173 publicly-traded companies in the “Semiconductors & related devices” industry, but how does it weigh in compared to its peers? We will compare GCT Semiconductor to similar companies based on the strength of its profitability, valuation, analyst recommendations, institutional ownership, earnings, risk and dividends.

Profitability

This table compares GCT Semiconductor and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCT Semiconductor	N/A	N/A	-27.81%
GCT Semiconductor Competitors	-470.17%	-79.71%	-11.21%

Insider and Institutional Ownership

28.1% of GCT Semiconductor shares are owned by institutional investors. Comparatively, 57.2% of shares of all “Semiconductors & related devices” companies are owned by institutional investors. 0.2% of GCT Semiconductor shares are owned by company insiders. Comparatively, 9.9% of shares of all “Semiconductors & related devices” companies are owned by company 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for GCT Semiconductor and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCT Semiconductor	0	0	1	0	3.00
GCT Semiconductor Competitors	2561	10154	19905	713	2.56

GCT Semiconductor currently has a consensus price target of $5.00, suggesting a potential upside of 246.02%. As a group, “Semiconductors & related devices” companies have a potential upside of 319.55%. Given GCT Semiconductor’s peers higher possible upside, analysts plainly believe GCT Semiconductor has less favorable growth aspects than its peers.

Risk and Volatility

GCT Semiconductor has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, GCT Semiconductor’s peers have a beta of 1.70, meaning that their average share price is 70% more volatile than the S&P 500.

Earnings & Valuation

This table compares GCT Semiconductor and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GCT Semiconductor	$9.13 million	-$2.00 million	-5.56
GCT Semiconductor Competitors	$29.51 billion	$592.42 million	42.81

GCT Semiconductor’s peers have higher revenue and earnings than GCT Semiconductor. GCT Semiconductor is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

GCT Semiconductor peers beat GCT Semiconductor on 9 of the 13 factors compared.

About GCT Semiconductor

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.