Comparison of CMC (NASDAQ:CCMP) and GLOBALFOUNDRIES (NASDAQ:GFS) materials


GLOBAL FOUNDRIES (NASDAQ: GFSGet a rating) and CMC Materials (NASDAQ: CCMPGet a rating) are both IT and technology companies, but which is the superior business? We’ll compare the two companies based on their dividend strength, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Profitability

This table compares the net margins, return on equity and return on assets of GLOBALFOUNDRIES and CMC Materials.

Net margins Return on equity return on assets
GLOBAL FOUNDRIES N / A 3.05% 1.62%
CMC materials 8.85% 23.55% 9.97%

Institutional and insider ownership

12.1% of GLOBALFOUNDRIES shares are held by institutional investors. By comparison, 93.7% of CMC Materials shares are held by institutional investors. 2.4% of CMC Materials shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent valuations and price targets for GLOBALFOUNDRIES and CMC Materials, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
GLOBAL FOUNDRIES 0 1 14 0 2.93
CMC materials 0 5 2 0 2.29

GLOBALFOUNDRIES currently has a consensus price target of $77.93, indicating a potential upside of 93.19%. CMC Materials has a consensus price target of $197.25, indicating a potential upside of 13.04%. Given the higher consensus rating of GLOBALFOUNDRIES and the higher possible upside, stock analysts clearly believe that GLOBALFOUNDRIES is more favorable than CMC Materials.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of GLOBALFOUNDRIES and CMC Materials.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
GLOBAL FOUNDRIES $6.59 billion 3.26 -$250.31 million N / A N / A
CMC materials $1.20 billion 4.16 -$68.58 million $3.82 45.68

CMC Materials has lower revenues, but higher profits than GLOBALFOUNDRIES.

Summary

CMC Materials beats GLOBALFOUNDRIES on 7 out of 11 factors compared between the two stocks.

GLOBALFOUNDRIES Company Profile (Get a rating)

GLOBALFOUNDRIES Inc. operates as a worldwide semiconductor foundry. It manufactures integrated circuits, which enable various electronic devices that are ubiquitous. The company manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, power management units and microelectromechanical systems, as well as consumer wafer manufacturing services and technologies. The company was founded in 2009 and is based in Malta, New York.

CMC Materials Company Profile (Get a rating)

CMC Materials, Inc., together with its subsidiaries, provides consumable materials to semiconductor manufacturers and customers in pipelines and adjacent industries in North America, Asia, Europe, the Middle East, Africa and America from South. The Company operates in two segments, Electronic Materials and Performance Materials. The Electronic Materials segment develops, produces and sells chemical mechanical planarization (CMP) slurries for polishing various materials used in IC devices, including tungsten, dielectric materials, copper, tantalum and aluminum; and various materials used in the production of disk substrates and magnetic heads for hard disk drives; and CMP buffers, which are used in conjunction with slurries in the CMP process. This segment also offers sulfuric, phosphoric, nitric and hydrofluoric acids, as well as ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents and various chemical mixtures; and develops and manufactures consumable products for cleaning advanced probe boards and test sockets. The Performance Materials segment provides pipeline and industrial materials including polymer-based drag reduction agents for crude oil transmission, valve greases, cleaners and sealants, as well as related services and equipment; and routine and emergency maintenance and training services. This segment also offers precision polishing and metrology systems for advanced optical applications; and magneto-rheological polishing fluids, consumables and spare and replacement parts, as well as optical polishing and other customer support services; and engages in wood processing business. The company was formerly known as Cabot Microelectronics Corporation and changed its name to CMC Materials, Inc. in October 2020. CMC Materials, Inc. was incorporated in 1999 and is headquartered in Aurora, Illinois.



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