United Microelectronics (NYSE:UMC) vs. Hua Hong Semiconductor (OTCMKTS:HHUSF) Critical Survey

Hua Hong Semiconductor (OTCMKTS:HHUSF) and United Microelectronics (NYSE:UMC) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Earnings & Valuation

This table compares Hua Hong Semiconductor and United Microelectronics”s top-line revenue, earnings per share 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
United Microelectronics	$7.25 billion	2.67	$1.95 billion	$0.67	11.54

United Microelectronics has higher revenue and earnings than Hua Hong Semiconductor.

Profitability

This table compares Hua Hong Semiconductor and United Microelectronics’ 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
United Microelectronics	23.90%	14.80%	9.41%

Insider and Institutional Ownership

5.1% of United Microelectronics shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Hua Hong Semiconductor and United Microelectronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hua Hong Semiconductor	0	0	0	0	N/A
United Microelectronics	0	2	1	0	2.33

United Microelectronics has a consensus target price of $7.40, suggesting a potential downside of 4.27%. Given United Microelectronics’ higher possible upside, analysts plainly believe United Microelectronics is more favorable than Hua Hong Semiconductor.

Summary

United Microelectronics beats Hua Hong Semiconductor on 8 of the 8 factors compared between the two stocks.

About Hua Hong Semiconductor

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products. It provides embedded non-volatile memory, standard logic and mixed-signal, radio frequency, power management integrated circuits, power discrete, and automotive solutions. The company 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, it 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, the company engages in real estate development; and trading activities. 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.

About United Microelectronics

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.