Seek Returns logo

SNOW vs. STM: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at SNOW and STM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SNOW is a standard domestic stock, while STM trades as New York Registered Shares, providing U.S. investors with a way to invest in the foreign-based company.

SymbolSNOWSTM
Company NameSnowflake Inc.STMicroelectronics N.V.
CountryUnited StatesNetherlands
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesSemiconductors & Semiconductor Equipment
Market Capitalization82.17 billion USD25.96 billion USD
ExchangeNYSENYSE
Listing DateSeptember 16, 2020December 8, 1994
Security TypeCommon StockNY Reg Shrs

Historical Performance

This chart compares the performance of SNOW and STM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

SNOW vs. STM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolSNOWSTM
5-Day Price Return7.52%3.50%
13-Week Price Return7.41%-9.02%
26-Week Price Return62.18%24.57%
52-Week Price Return119.53%-3.63%
Month-to-Date Return7.52%4.03%
Year-to-Date Return57.06%2.20%
10-Day Avg. Volume4.26M1.96M
3-Month Avg. Volume4.94M2.50M
3-Month Volatility53.49%46.14%
Beta1.091.18

Profitability

Return on Equity (TTM)

SNOW

-51.54%

IT Services Industry

Max
32.78%
Q3
19.28%
Median
13.86%
Q1
5.50%
Min
-10.00%

SNOW has a negative Return on Equity of -51.54%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

STM

4.88%

Semiconductors & Semiconductor Equipment Industry

Max
47.13%
Q3
23.50%
Median
9.94%
Q1
0.86%
Min
-20.69%

STM’s Return on Equity of 4.88% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

SNOW vs. STM: A comparison of their Return on Equity (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Net Profit Margin (TTM)

SNOW

-33.53%

IT Services Industry

Max
19.71%
Q3
11.01%
Median
6.66%
Q1
2.96%
Min
-6.22%

SNOW has a negative Net Profit Margin of -33.53%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

STM

7.65%

Semiconductors & Semiconductor Equipment Industry

Max
52.41%
Q3
23.88%
Median
10.17%
Q1
1.21%
Min
-32.15%

STM’s Net Profit Margin of 7.65% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

SNOW vs. STM: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Operating Profit Margin (TTM)

SNOW

-38.18%

IT Services Industry

Max
22.44%
Q3
14.90%
Median
8.82%
Q1
4.91%
Min
-9.89%

SNOW has a negative Operating Profit Margin of -38.18%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

STM

6.17%

Semiconductors & Semiconductor Equipment Industry

Max
58.09%
Q3
27.54%
Median
11.18%
Q1
3.31%
Min
-28.36%

STM’s Operating Profit Margin of 6.17% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

SNOW vs. STM: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Profitability at a Glance

SymbolSNOWSTM
Return on Equity (TTM)-51.54%4.88%
Return on Assets (TTM)-16.43%3.47%
Net Profit Margin (TTM)-33.53%7.65%
Operating Profit Margin (TTM)-38.18%6.17%
Gross Profit Margin (TTM)66.60%32.96%

Financial Strength

Current Ratio (MRQ)

SNOW

1.48

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

SNOW’s Current Ratio of 1.48 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.

STM

2.32

Semiconductors & Semiconductor Equipment Industry

Max
6.58
Q3
4.24
Median
2.73
Q1
2.13
Min
1.02

STM’s Current Ratio of 2.32 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

SNOW vs. STM: A comparison of their Current Ratio (MRQ) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

SNOW

0.96

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

SNOW’s Debt-to-Equity Ratio of 0.96 is typical for the IT Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

STM

0.15

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.48
Median
0.25
Q1
0.01
Min
0.00

STM’s Debt-to-Equity Ratio of 0.15 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SNOW vs. STM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

SNOW

--

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

Interest Coverage Ratio data for SNOW is currently unavailable.

STM

5.37

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
74.71
Median
26.06
Q1
6.43
Min
-7.80

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s Interest Coverage Ratio of 5.37 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

SNOW vs. STM: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Financial Strength at a Glance

SymbolSNOWSTM
Current Ratio (MRQ)1.482.32
Quick Ratio (MRQ)1.411.61
Debt-to-Equity Ratio (MRQ)0.960.15
Interest Coverage Ratio (TTM)--5.37

Growth

Revenue Growth

SNOW vs. STM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

SNOW vs. STM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

SNOW

0.00%

IT Services Industry

Max
2.79%
Q3
1.76%
Median
0.58%
Q1
0.00%
Min
0.00%

SNOW currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

STM

1.24%

Semiconductors & Semiconductor Equipment Industry

Max
3.72%
Q3
1.51%
Median
0.69%
Q1
0.00%
Min
0.00%

STM’s Dividend Yield of 1.24% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

SNOW vs. STM: A comparison of their Dividend Yield (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

SNOW

0.00%

IT Services Industry

Max
107.85%
Q3
52.62%
Median
22.53%
Q1
0.00%
Min
0.00%

SNOW has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

STM

35.28%

Semiconductors & Semiconductor Equipment Industry

Max
205.27%
Q3
88.01%
Median
27.13%
Q1
0.00%
Min
0.00%

STM’s Dividend Payout Ratio of 35.28% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

SNOW vs. STM: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend at a Glance

SymbolSNOWSTM
Dividend Yield (TTM)0.00%1.24%
Dividend Payout Ratio (TTM)0.00%35.28%

Valuation

Price-to-Earnings Ratio (TTM)

SNOW

--

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

P/E Ratio data for SNOW is currently unavailable.

STM

28.49

Semiconductors & Semiconductor Equipment Industry

Max
106.30
Q3
61.93
Median
38.96
Q1
23.71
Min
13.06

STM’s P/E Ratio of 28.49 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

SNOW vs. STM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

SNOW

20.04

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

With a P/S Ratio of 20.04, SNOW trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

STM

2.18

Semiconductors & Semiconductor Equipment Industry

Max
19.99
Q3
10.21
Median
5.23
Q1
2.88
Min
1.13

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s P/S Ratio of 2.18 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

SNOW vs. STM: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

SNOW

31.43

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

At 31.43, SNOW’s P/B Ratio is at an extreme premium to the IT Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

STM

1.47

Semiconductors & Semiconductor Equipment Industry

Max
14.22
Q3
6.94
Median
4.29
Q1
1.99
Min
0.67

STM’s P/B Ratio of 1.47 is in the lower quartile for the Semiconductors & Semiconductor Equipment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

SNOW vs. STM: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Valuation at a Glance

SymbolSNOWSTM
Price-to-Earnings Ratio (TTM)--28.49
Price-to-Sales Ratio (TTM)20.042.18
Price-to-Book Ratio (MRQ)31.431.47
Price-to-Free Cash Flow Ratio (TTM)112.40287.07