Comparative Financial Analysis: Ichor Holdings vs. GCT Semiconductor

GCT Semiconductor (NYSE:GCTS) and Ichor Holdings (NASDAQ:ICHR) are both small-cap computer and technology enterprises. This article aims to evaluate which of the two companies may be considered the better investment option. The comparison will cover various aspects including their earnings strength, analyst recommendations, institutional ownership, profitability, valuation, dividend policies, and risk factors.

Volatility & Risk

When analyzing stock volatility, GCT Semiconductor has a beta of 1.16. This indicates that its stock price tends to be 16% more volatile than that of the S&P 500. In contrast, Ichor displays a higher beta of 1.92, suggesting its stock price is 92% more volatile in comparison to the S&P 500. This higher beta indicates that Ichor may present greater risk and reward potential.

Profitability

Examining the profitability indicators, a comparison of net margins, return on equity, and return on assets is useful:

	Net Margins	Return on Equity	Return on Assets
GCT Semiconductor	N/A	N/A	-27.81%
Ichor	-3.51%	-2.14%	-1.49%

GCT Semiconductor has not reported net margins and has negative returns on equity and assets. In contrast, Ichor shows negative figures as well but is comparatively better in these profitability metrics.

Analyst Ratings

Reviewing analyst recommendations gives insight into potential stock performance:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCT Semiconductor	0	0	1	0	3.00
Ichor	0	2	4	1	2.86

GCT Semiconductor has a consensus target price of $8.00, reflecting a potential upside of 218.09%. Ichor's target price stands at $42.29, indicating a potential upside of 37.11%. Given these figures, analysts appear to favor GCT Semiconductor over Ichor.

Valuation and Earnings

A look at revenue and valuation metrics reveals the following:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCT Semiconductor	$16.03 million	7.49	-$2.00 million	N/A	N/A
Ichor	$811.12 million	1.28	-$42.99 million	($0.93)	-33.16

While GCT Semiconductor has higher earnings, it also has significantly lower revenue in contrast to Ichor, which may indicate differing market positions.

Insider and Institutional Ownership

In terms of ownership, GCT Semiconductor has 28.1% of its shares held by institutional investors. Ichor surpasses this with 94.8% institutional ownership. Additionally, only 0.2% of GCT Semiconductor shares are held by insiders, whereas 2.2% of Ichor's shares are held by insiders. The higher institutional ownership in Ichor may suggest greater confidence among large investors about its future performance.

Summary

In summary, Ichor ranks higher than GCT Semiconductor in 7 out of the 13 evaluated categories. However, prospective investors should carefully consider individual risk tolerance and investment strategy when evaluating these companies.

About GCT Semiconductor

GCT Semiconductor, Inc. operates as a fabless semiconductor company and specializes in designing, developing, and marketing integrated circuits for the wireless semiconductor industry. They focus on RF and modem chipsets for technologies such as 4G LTE, 5G, and low-speed mobile networks. Based in San Jose, California, GCT Semiconductor was founded in 1998 and primarily serves markets in Taiwan, China, Korea, Japan, and beyond.

About Ichor Holdings

Ichor Holdings, Ltd. specializes in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment. Their offerings include gas and chemical delivery systems used in semiconductor manufacturing. Ichor is headquartered in Fremont, California, and was incorporated in 1999. It primarily markets its products to equipment OEMs in the semiconductor market, especially in Japan.

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