Seek Returns logo

UMC vs. ZM: A Head-to-Head Stock Comparison

Updated on

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

Company Profile

UMC trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, ZM is a standard domestic listing.

SymbolUMCZM
Company NameUnited Microelectronics CorporationZoom Communications Inc.
CountryTaiwanUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentSoftware
Market Capitalization16.73 billion USD24.35 billion USD
ExchangeNYSENasdaqGS
Listing DateSeptember 19, 2000April 18, 2019
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of UMC and ZM 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.

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

Historical Performance at a Glance

SymbolUMCZM
5-Day Price Return-1.22%12.69%
13-Week Price Return-13.91%-0.88%
26-Week Price Return-3.34%-4.49%
52-Week Price Return8.46%19.56%
Month-to-Date Return-2.41%9.86%
Year-to-Date Return-5.81%-0.32%
10-Day Avg. Volume39.86M4.96M
3-Month Avg. Volume44.86M2.91M
3-Month Volatility21.22%33.36%
Beta0.320.79

Profitability

Return on Equity (TTM)

UMC

10.76%

Semiconductors & Semiconductor Equipment Industry

Max
52.74%
Q3
23.49%
Median
11.60%
Q1
3.23%
Min
-20.69%

UMC’s Return on Equity of 10.76% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

ZM

11.97%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

ZM’s Return on Equity of 11.97% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

UMC vs. ZM: A comparison of their Return on Equity (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Net Profit Margin (TTM)

UMC

16.69%

Semiconductors & Semiconductor Equipment Industry

Max
44.17%
Q3
22.38%
Median
11.95%
Q1
3.21%
Min
-25.16%

UMC’s Net Profit Margin of 16.69% 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.

ZM

22.31%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

A Net Profit Margin of 22.31% places ZM in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

UMC vs. ZM: A comparison of their Net Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Operating Profit Margin (TTM)

UMC

19.65%

Semiconductors & Semiconductor Equipment Industry

Max
58.03%
Q3
27.84%
Median
12.45%
Q1
5.15%
Min
-28.61%

UMC’s Operating Profit Margin of 19.65% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

ZM

18.13%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

ZM’s Operating Profit Margin of 18.13% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

UMC vs. ZM: A comparison of their Operating Profit Margin (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Profitability at a Glance

SymbolUMCZM
Return on Equity (TTM)10.76%11.97%
Return on Assets (TTM)7.00%9.72%
Net Profit Margin (TTM)16.69%22.31%
Operating Profit Margin (TTM)19.65%18.13%
Gross Profit Margin (TTM)29.94%75.85%

Financial Strength

Current Ratio (MRQ)

UMC

1.77

Semiconductors & Semiconductor Equipment Industry

Max
8.42
Q3
4.70
Median
2.75
Q1
2.07
Min
1.04

UMC’s Current Ratio of 1.77 falls into the lower quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ZM

4.57

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

ZM’s Current Ratio of 4.57 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

UMC vs. ZM: A comparison of their Current Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

UMC

0.20

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.45
Median
0.22
Q1
0.01
Min
0.00

UMC’s Debt-to-Equity Ratio of 0.20 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.

ZM

0.00

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

ZM’s Debt-to-Equity Ratio of 0.00 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

UMC vs. ZM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Interest Coverage Ratio (TTM)

UMC

313.16

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
81.10
Median
27.22
Q1
7.28
Min
-4.26

With an Interest Coverage Ratio of 313.16, UMC demonstrates a superior capacity to service its debt, placing it well above the typical range for the Semiconductors & Semiconductor Equipment industry. This stems from either robust earnings or a conservative debt load.

ZM

7.63

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

ZM’s Interest Coverage Ratio of 7.63 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

UMC vs. ZM: A comparison of their Interest Coverage Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Financial Strength at a Glance

SymbolUMCZM
Current Ratio (MRQ)1.774.57
Quick Ratio (MRQ)1.444.47
Debt-to-Equity Ratio (MRQ)0.200.00
Interest Coverage Ratio (TTM)313.167.63

Growth

Revenue Growth

UMC vs. ZM: 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

UMC vs. ZM: 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)

UMC

7.29%

Semiconductors & Semiconductor Equipment Industry

Max
4.16%
Q3
1.78%
Median
0.74%
Q1
0.00%
Min
0.00%

UMC’s Dividend Yield of 7.29% is exceptionally high, placing it well above the typical range for the Semiconductors & Semiconductor Equipment industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

ZM

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

ZM 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.

UMC vs. ZM: A comparison of their Dividend Yield (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

UMC

163.64%

Semiconductors & Semiconductor Equipment Industry

Max
196.12%
Q3
87.72%
Median
26.57%
Q1
0.00%
Min
0.00%

UMC’s Dividend Payout Ratio of 163.64% is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ZM

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

ZM 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.

UMC vs. ZM: A comparison of their Dividend Payout Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Dividend at a Glance

SymbolUMCZM
Dividend Yield (TTM)7.29%0.00%
Dividend Payout Ratio (TTM)163.64%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

UMC

13.00

Semiconductors & Semiconductor Equipment Industry

Max
109.37
Q3
57.11
Median
28.95
Q1
22.13
Min
11.14

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, UMC’s P/E Ratio of 13.00 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ZM

21.69

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

In the lower quartile for the Software industry, ZM’s P/E Ratio of 21.69 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

UMC vs. ZM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

UMC

2.17

Semiconductors & Semiconductor Equipment Industry

Max
16.09
Q3
10.10
Median
4.82
Q1
2.60
Min
0.93

In the lower quartile for the Semiconductors & Semiconductor Equipment industry, UMC’s P/S Ratio of 2.17 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.

ZM

4.84

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

In the lower quartile for the Software industry, ZM’s P/S Ratio of 4.84 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.

UMC vs. ZM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

UMC

1.65

Semiconductors & Semiconductor Equipment Industry

Max
13.56
Q3
6.75
Median
3.68
Q1
1.89
Min
0.60

UMC’s P/B Ratio of 1.65 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.

ZM

2.66

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

ZM’s P/B Ratio of 2.66 is in the lower quartile for the Software 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.

UMC vs. ZM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Semiconductors & Semiconductor Equipment and Software industry benchmarks.

Valuation at a Glance

SymbolUMCZM
Price-to-Earnings Ratio (TTM)13.0021.69
Price-to-Sales Ratio (TTM)2.174.84
Price-to-Book Ratio (MRQ)1.652.66
Price-to-Free Cash Flow Ratio (TTM)14.0513.36