In the dynamic world of semiconductors, two companies stand out: Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC). Both firms operate within the same industry, focusing on innovative technologies that serve various applications, from IoT to consumer electronics. Their distinct strategies and market positions make them compelling candidates for investors seeking growth opportunities. Join me as I analyze these two companies to uncover which one holds the most promise for your investment portfolio.
Table of contents
Company Overview
Silicon Laboratories Inc. Overview
Silicon Laboratories Inc. (SLAB) is a leading fabless semiconductor company specializing in analog-intensive mixed-signal solutions. With a market capitalization of approximately $4.19B, the firm plays a key role in the Internet of Things (IoT) sector, providing products such as wireless microcontrollers and sensor solutions. Headquartered in Austin, Texas, Silicon Labs focuses on various applications including smart home technology, industrial automation, and medical instrumentation. The company has a diverse customer base and utilizes a combination of direct sales and independent distributors to reach its market. Founded in 1996, Silicon Labs aims to empower innovation by delivering essential components for connected devices.
Lattice Semiconductor Corporation Overview
Lattice Semiconductor Corporation (LSCC), with a market cap of around $9.60B, excels in developing semiconductor products, particularly field programmable gate arrays (FPGAs). Founded in 1983 and based in Hillsboro, Oregon, Lattice serves a broad range of industries including communications, computing, and automotive. Its product portfolio includes various FPGA families and video connectivity solutions. The company emphasizes a flexible business model, selling directly to customers while also leveraging a network of independent representatives and distributors. Lattice’s mission is to provide low-power, high-performance solutions that meet the evolving needs of its diverse clientele.
Key similarities and differences
Both Silicon Laboratories and Lattice Semiconductor operate within the semiconductor industry, focusing on innovative technologies to serve diverse markets. However, SLAB specializes in mixed-signal solutions primarily for IoT applications, while LSCC concentrates on FPGAs and video connectivity products. Their sales strategies also differ, with SLAB relying more on direct sales channels compared to LSCC’s balanced approach of direct and indirect sales.
Income Statement Comparison
The following table presents a comparison of key income statement metrics for Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC) for the fiscal year 2024. This will help investors assess their financial performance.
| Metric | Silicon Laboratories Inc. (SLAB) | Lattice Semiconductor Corporation (LSCC) |
|---|---|---|
| Market Cap | 4.19B | 9.60B |
| Revenue | 584M | 509M |
| EBITDA | -105M | 107M |
| EBIT | -154M | 61M |
| Net Income | -191M | 61M |
| EPS | -5.93 | 0.44 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In reviewing the income statements, I note that SLAB experienced a significant decline in revenue to 584M from 737M in the previous year, leading to a negative net income of 191M. Conversely, LSCC’s revenue decreased slightly to 509M, but it managed to maintain profitability with a net income of 61M. SLAB’s EBITDA remains negative, indicating operational challenges, while LSCC’s improved margins suggest effective cost management. Overall, SLAB’s performance highlights a concerning downward trend, contrasting sharply with LSCC’s stability and profitability. This warrants caution for potential investors in SLAB.
Financial Ratios Comparison
The following table presents a comparative analysis of the most recent financial ratios for Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC).
| Metric | SLAB | LSCC |
|---|---|---|
| ROE | -17.69% | 8.60% |
| ROIC | -18.15% | 7.75% |
| P/E | -121.88 | 36.67 |
| P/B | 3.81 | 11.41 |
| Current Ratio | 6.15 | 3.66 |
| Quick Ratio | 5.07 | 2.62 |
| D/E | 0.01 | 0.02 |
| Debt-to-Assets | 1.27% | 1.90% |
| Interest Coverage | -126.33 | 129.54 |
| Asset Turnover | 0.48 | 0.60 |
| Fixed Asset Turnover | 4.42 | 7.62 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
When analyzing the financial ratios, SLAB appears to struggle with significant negative returns, particularly in ROE and ROIC, indicating operational difficulties. In contrast, LSCC shows strong profitability metrics, including a positive ROE and a favorable interest coverage ratio, suggesting a healthier financial position. Investors should consider the high debt levels and the negative performance indicators of SLAB as potential risks, while LSCC’s ratios present a more favorable investment opportunity.
Dividend and Shareholder Returns
Silicon Laboratories Inc. (SLAB) does not pay dividends, reflecting its negative net income and focus on reinvestment for growth. The company prioritizes R&D and acquisitions, which may align with long-term shareholder value creation, albeit with inherent risks. Lattice Semiconductor Corporation (LSCC) also refrains from dividends, channeling resources into expansion efforts rather than shareholder payouts. Despite the lack of dividends, both companies engage in share buybacks, reinforcing their commitment to enhancing shareholder value. Overall, this strategy may support sustainable long-term growth if managed prudently.
Strategic Positioning
Silicon Laboratories Inc. (SLAB) holds a market cap of approximately 4.19B, focusing on analog-intensive mixed-signal solutions in the IoT sector, where competitive pressure is increasing from companies like Lattice Semiconductor Corporation (LSCC), valued at about 9.60B. Both firms innovate within the semiconductor industry; however, SLAB’s portfolio is largely centered on wireless microcontrollers, while LSCC specializes in field programmable gate arrays. This differentiation is crucial as technological disruption continues to reshape market dynamics.
Stock Comparison
In this section, I will analyze the weekly stock price performance of Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC), highlighting significant price movements and trading dynamics over the past year.
Trend Analysis
Silicon Laboratories Inc. (SLAB) Over the past year, SLAB’s stock price has experienced a percentage change of +5.8%, indicating a bullish trend. However, during the recent period from September 14, 2025, to November 30, 2025, the stock has shown a decline of -4.63%, signaling a temporary bearish phase. The highest price recorded was 155.33, while the lowest was 89.82. The trend is characterized by deceleration, with a standard deviation of 13.72, suggesting some volatility in price movements.
Lattice Semiconductor Corporation (LSCC) LSCC has performed well over the past year, with an overall percentage change of +8.7%, also reflecting a bullish trend. The recent period from September 14, 2025, to November 30, 2025, shows a strong positive change of +9.0%, indicating robust momentum. The stock reached a highest price of 80.45 and a lowest price of 39.03. Similar to SLAB, LSCC’s trend is in deceleration, but with a lower standard deviation of 9.95, indicating less volatility compared to SLAB.
In summary, while both stocks exhibit bullish trends over the longer term, recent movements suggest that SLAB may require closer scrutiny due to its recent downturn. LSCC, on the other hand, shows strong recent performance, bolstered by favorable trading dynamics.
Analyst Opinions
Recent analyst recommendations for Silicon Laboratories Inc. (SLAB) indicate a cautious outlook, with a rating of C- due to low scores in key financial metrics. I note that analysts highlight concerns regarding return on equity and debt management. In contrast, Lattice Semiconductor Corporation (LSCC) has received a more favorable B- rating, emphasizing its strong return on assets and discounted cash flow performance. Overall, the consensus leans towards a ‘hold’ for SLAB and a ‘buy’ for LSCC in 2025.
Stock Grades
In this section, I present the latest stock ratings for Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC), based on reliable data from recognized grading companies.
Silicon Laboratories Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Susquehanna | Maintain | Neutral | 2025-08-06 |
| Morgan Stanley | Maintain | Equal Weight | 2025-08-06 |
| Barclays | Maintain | Equal Weight | 2025-08-05 |
| Susquehanna | Maintain | Neutral | 2025-07-22 |
| Stifel | Maintain | Buy | 2025-07-18 |
| Keybanc | Maintain | Overweight | 2025-07-08 |
| Benchmark | Maintain | Buy | 2025-05-27 |
| Needham | Maintain | Buy | 2025-05-14 |
| Benchmark | Maintain | Buy | 2025-05-14 |
| Susquehanna | Maintain | Neutral | 2025-05-14 |
Lattice Semiconductor Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Rosenblatt | Maintain | Buy | 2025-11-04 |
| Needham | Maintain | Buy | 2025-11-04 |
| Benchmark | Maintain | Buy | 2025-11-04 |
| Stifel | Maintain | Buy | 2025-11-04 |
| Baird | Maintain | Outperform | 2025-11-04 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Keybanc | Maintain | Overweight | 2025-09-30 |
| Needham | Maintain | Buy | 2025-09-22 |
| Benchmark | Maintain | Buy | 2025-09-11 |
| Benchmark | Maintain | Buy | 2025-08-05 |
Overall, both SLAB and LSCC are receiving consistent maintenance of their grades, indicating stable sentiment among analysts. Notably, LSCC has a stronger bullish outlook with multiple “Buy” ratings, while SLAB’s ratings reflect a more cautious stance, particularly with repeated “Neutral” grades.
Target Prices
The current target price consensus reflects optimistic projections for both Silicon Laboratories Inc. and Lattice Semiconductor Corporation.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Silicon Laboratories Inc. | 165 | 130 | 147.5 |
| Lattice Semiconductor Corporation | 85 | 65 | 79 |
For Silicon Laboratories Inc. (current price: 127.58), the target consensus indicates potential upside, suggesting analysts expect the stock to rise. Similarly, Lattice Semiconductor Corporation (current price: 70.21) shows a favorable outlook compared to its target price, reinforcing positive sentiment in the market.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC) based on recent financial data.
| Criterion | Silicon Laboratories Inc. (SLAB) | Lattice Semiconductor Corporation (LSCC) |
|---|---|---|
| Diversification | Moderate product range | Broad product categories |
| Profitability | Negative margins | Positive margins |
| Innovation | Strong R&D investment | Focus on unique semiconductor solutions |
| Global presence | Established in multiple regions | Strong presence in Asia and the U.S. |
| Market Share | Moderate share in semiconductors | Growing market share in programmable logic |
| Debt level | Very low debt levels | Low debt levels |
Key takeaways: SLAB shows strength in innovation but struggles with profitability, while LSCC maintains positive margins and a growing market presence with low debt levels, making it a potentially more stable investment.
Risk Analysis
The following table outlines the key risks associated with Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC).
| Metric | Silicon Laboratories Inc. | Lattice Semiconductor Corporation |
|---|---|---|
| Market Risk | High (Beta: 1.555) | High (Beta: 1.724) |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
Both companies face significant market volatility risks, as indicated by their high beta values, which exceed 1.00. Recent geopolitical tensions and regulatory scrutiny in the semiconductor industry could impact performance, making careful monitoring essential for investors.
Which one to choose?
When comparing Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC), both companies exhibit different strengths and weaknesses. SLAB has a lower rating (C-) compared to LSCC’s B-, indicating potential challenges in profitability and operational efficiency. SLAB’s net profit margin stands at -32.7%, while LSCC boasts a positive net profit margin of 12%. In terms of stock trends, LSCC shows a stronger bullish trend with an 8.7% price increase, compared to SLAB’s 5.8%. Considering these factors, LSCC appears to be the more profitable option for investors looking for growth and stability.
Investors focused on growth may prefer LSCC, while those prioritizing risk management might find SLAB’s lower debt levels appealing. However, SLAB faces significant risks related to operational performance and market competition.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Silicon Laboratories Inc. and Lattice Semiconductor Corporation to enhance your investment decisions:
