Seek Returns logo

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

Updated on

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

Company Profile

Both STM and WIT offer U.S. investors access to foreign companies, with STM trading as New York Registered Shares and WIT as an American Depositary Receipt (ADR).

SymbolSTMWIT
Company NameSTMicroelectronics N.V.Wipro Limited
CountryNetherlandsIndia
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentIT Services
Market Capitalization25.49 billion USD27.80 billion USD
ExchangeNYSENYSE
Listing DateDecember 8, 1994October 19, 2000
Security TypeNY Reg ShrsADR

Historical Performance

This chart compares the performance of STM and WIT 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.

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

Historical Performance at a Glance

SymbolSTMWIT
5-Day Price Return-0.95%-0.49%
13-Week Price Return-12.24%-8.79%
26-Week Price Return20.45%-10.70%
52-Week Price Return-6.56%-11.04%
Month-to-Date Return1.01%0.85%
Year-to-Date Return-0.76%-20.18%
10-Day Avg. Volume2.34M10.25M
3-Month Avg. Volume2.52M8.82M
3-Month Volatility46.18%21.86%
Beta1.190.68

Profitability

Return on Equity (TTM)

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.

WIT

15.98%

IT Services Industry

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

WIT’s Return on Equity of 15.98% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

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.

WIT

15.08%

IT Services Industry

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

A Net Profit Margin of 15.08% places WIT in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

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.

WIT

16.91%

IT Services Industry

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

An Operating Profit Margin of 16.91% places WIT in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolSTMWIT
Return on Equity (TTM)4.88%15.98%
Return on Assets (TTM)3.47%10.44%
Net Profit Margin (TTM)7.65%15.08%
Operating Profit Margin (TTM)6.17%16.91%
Gross Profit Margin (TTM)32.96%30.34%

Financial Strength

Current Ratio (MRQ)

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.

WIT

2.40

IT Services Industry

Max
3.17
Q3
2.00
Median
1.47
Q1
1.05
Min
0.52

WIT’s Current Ratio of 2.40 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

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

Debt-to-Equity Ratio (MRQ)

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.

WIT

0.18

IT Services Industry

Max
3.11
Q3
1.55
Median
0.55
Q1
0.17
Min
0.00

WIT’s Debt-to-Equity Ratio of 0.18 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 vs. WIT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

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.

WIT

--

IT Services Industry

Max
129.00
Q3
56.00
Median
11.69
Q1
0.77
Min
-28.15

Interest Coverage Ratio data for WIT is currently unavailable.

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

Financial Strength at a Glance

SymbolSTMWIT
Current Ratio (MRQ)2.322.40
Quick Ratio (MRQ)1.612.34
Debt-to-Equity Ratio (MRQ)0.150.18
Interest Coverage Ratio (TTM)5.37--

Growth

Revenue Growth

STM vs. WIT: 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

STM vs. WIT: 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)

STM

1.28%

Semiconductors & Semiconductor Equipment Industry

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

STM’s Dividend Yield of 1.28% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

WIT

0.21%

IT Services Industry

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

WIT’s Dividend Yield of 0.21% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

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.

WIT

175.79%

IT Services Industry

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

At 175.79%, WIT’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the IT Services industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

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

Dividend at a Glance

SymbolSTMWIT
Dividend Yield (TTM)1.28%0.21%
Dividend Payout Ratio (TTM)35.28%175.79%

Valuation

Price-to-Earnings Ratio (TTM)

STM

27.49

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 27.49 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.

WIT

18.61

IT Services Industry

Max
56.41
Q3
33.17
Median
23.17
Q1
16.18
Min
6.62

WIT’s P/E Ratio of 18.61 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

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

Price-to-Sales Ratio (TTM)

STM

2.10

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 2.10 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.

WIT

2.81

IT Services Industry

Max
5.99
Q3
4.26
Median
1.93
Q1
0.97
Min
0.12

WIT’s P/S Ratio of 2.81 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

STM

1.48

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 1.48 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.

WIT

3.21

IT Services Industry

Max
12.34
Q3
7.54
Median
3.84
Q1
2.52
Min
0.88

WIT’s P/B Ratio of 3.21 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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

Valuation at a Glance

SymbolSTMWIT
Price-to-Earnings Ratio (TTM)27.4918.61
Price-to-Sales Ratio (TTM)2.102.81
Price-to-Book Ratio (MRQ)1.483.21
Price-to-Free Cash Flow Ratio (TTM)277.0016.09