In the rapidly evolving semiconductor industry, two companies stand out: Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC). Both firms are leaders in their respective niches, focusing on innovative solutions for the Internet of Things (IoT) and programmable logic devices. Their overlapping markets and distinct approaches to technology innovation make them compelling candidates for comparison. Join me as we explore which of these companies presents the most intriguing investment opportunity for your portfolio.
Table of contents
Company Overview
Silicon Laboratories Inc. Overview
Silicon Laboratories Inc. (SLAB) is a prominent player in the semiconductor industry, specializing in analog-intensive mixed-signal solutions. Founded in 1996 and headquartered in Austin, Texas, the company focuses on developing innovative products such as wireless microcontrollers and sensors tailored for the Internet of Things (IoT) applications. SLAB’s offerings are utilized across various sectors, including consumer electronics, industrial automation, and medical instrumentation. With a strong market cap of approximately $4.13B, Silicon Labs positions itself as a leader in providing cutting-edge technology for connected devices.
Lattice Semiconductor Corporation Overview
Lattice Semiconductor Corporation (LSCC) has carved out a niche in the semiconductor sector since its inception in 1983. Headquartered in Hillsboro, Oregon, Lattice specializes in field programmable gate arrays (FPGAs) and video connectivity solutions, catering to a diverse range of markets, including communications, computing, and automotive applications. With a market cap nearing $9.69B, Lattice’s innovative products are designed to meet the growing demands of modern technology while also offering technology licensing options.
Key Similarities and Differences
Both Silicon Labs and Lattice Semiconductor operate within the semiconductor industry, focusing on innovative technology solutions. However, they differ significantly in their product offerings; SLAB emphasizes analog and mixed-signal solutions for IoT, while LSCC focuses on programmable logic devices and FPGAs. This distinction in product focus reflects their unique approaches to addressing market needs.
Income Statement Comparison
The following table summarizes the income statements of Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC) for the most recent fiscal year, providing key metrics for comparison.
| Metric | [Company A: SLAB] | [Company B: LSCC] |
|---|---|---|
| Revenue | 584M | 509M |
| EBITDA | -105M | 107M |
| EBIT | -154M | 61M |
| Net Income | -191M | 61M |
| EPS | -5.93 | 0.44 |
Interpretation of Income Statement
In the most recent year, SLAB reported a significant decline in revenue to 584M, down from 737M the previous year, leading to a net loss of 191M. This represents ongoing challenges, particularly in managing costs, as evidenced by its negative EBITDA. Conversely, LSCC showed a decrease in revenue to 509M but maintained profitability with a net income of 61M and an EPS of 0.44. The contrasting performance highlights SLAB’s struggles with margins and overall business stability, while LSCC demonstrates resilience and improved operational efficiency.
Financial Ratios Comparison
The table below provides a comparative overview of the most recent revenue and 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% | 1.94% |
| 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
Silicon Laboratories (SLAB) shows concerning figures, particularly with a negative ROE and high P/E ratio, indicating potential profitability issues. In contrast, Lattice Semiconductor (LSCC) displays stronger performance metrics, especially with a positive ROE and interest coverage ratio, suggesting better financial health and operational efficiency. Investors should be cautious with SLAB, given its high debt reliance and negative profit margins.
Dividend and Shareholder Returns
Both Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC) do not pay dividends, indicating a focus on reinvesting in growth and innovation. SLAB’s financials reflect significant risks, with a negative net income and weak cash flow coverage ratios. Conversely, LSCC displays stronger profitability metrics and cash flow generation, which may support future shareholder value creation. While neither company issues dividends, their strategic use of share buybacks could enhance shareholder returns in the long term, particularly for LSCC.
Strategic Positioning
Silicon Laboratories Inc. (SLAB) holds a competitive position in the semiconductor market, focusing on analog-intensive mixed-signal solutions, particularly in the IoT space. With a market cap of 4.13B, it faces stiff competition from Lattice Semiconductor Corporation (LSCC), which has a market cap of 9.69B and specializes in field programmable gate arrays. Both companies are under pressure from technological disruptions, but SLAB’s focus on innovative IoT solutions may provide a strategic edge.
Stock Comparison
Over the past year, both Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC) have exhibited notable price movements, reflecting their respective trading dynamics and market sentiment.
Trend Analysis
Analyzing the overall trend for Silicon Laboratories Inc. (SLAB) over the past year, the stock has experienced a percentage change of +4.25%, indicating a bullish trend. However, the trend is currently showing signs of deceleration, with volatility measured at a standard deviation of 13.72. The highest price recorded was 155.33, while the lowest was 89.82. In the recent period from September 14, 2025, to November 30, 2025, the stock has encountered a decline of -6.03%, with a standard deviation of 5.69, indicating a relatively stable trading environment despite the recent downturn.
For Lattice Semiconductor Corporation (LSCC), the stock has performed well with a percentage change of +9.62% over the same period, also indicating a bullish trend. Similar to SLAB, LSCC’s trend is showing deceleration, characterized by a standard deviation of 9.96. The highest price reached was 80.45, and the lowest was 39.03. In the recent analysis period from September 14, 2025, to November 30, 2025, LSCC has shown a strong recovery with a percentage change of +9.93%, reflecting a buyer-dominant behavior with a buyer dominance percentage of 62.17, signaling positive market sentiment.
Analyst Opinions
Recent analyst recommendations indicate a mixed sentiment towards Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC). Analysts have rated SLAB with a “C-” due to concerns over its low scores in return on equity and assets, suggesting a hold strategy. In contrast, LSCC received a “B-” rating, with analysts like those at Morgan Stanley advocating a buy due to its strong performance metrics. The consensus for LSCC leans towards a buy, while SLAB’s outlook remains cautious, reflecting a hold sentiment for the current year.
Stock Grades
In the current market, I have identified reliable grades for two companies: Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC). Here’s the detailed breakdown of their stock ratings.
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 companies exhibit a stable trend in their stock grades, with SLAB showing a mix of Neutral and Buy ratings while LSCC enjoys a consistent Buy rating from multiple reputable grading firms. This indicates a generally favorable sentiment towards LSCC, while SLAB’s mixed ratings suggest a cautious approach may be warranted.
Target Prices
The current consensus target prices for Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC) reflect optimistic growth expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Silicon Laboratories Inc. | 165 | 130 | 147.5 |
| Lattice Semiconductor Corp. | 85 | 65 | 79 |
For Silicon Laboratories Inc., the consensus target of 147.5 suggests potential upside from the current price of 125.79. Similarly, Lattice Semiconductor’s consensus of 79 indicates favorable expectations relative to its current price of 70.80.
Strengths and Weaknesses
Below is a comparison of Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC) based on their strengths and weaknesses.
| Criterion | SLAB | LSCC |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Low (Net Margin: -32.7%) | High (Net Margin: 35.1%) |
| Innovation | Strong | Strong |
| Global presence | Strong | Strong |
| Market Share | Moderate | High |
| Debt level | Very Low (Debt to Equity: 0.014) | Very Low (Debt to Equity: 0.021) |
Key takeaways indicate that LSCC exhibits stronger profitability and market share compared to SLAB, while both companies show strength in innovation and global presence. SLAB, however, struggles with profitability.
Risk Analysis
In the following table, I present a concise overview of the potential risks associated with Silicon Laboratories Inc. and Lattice Semiconductor Corporation.
| Metric | Silicon Laboratories Inc. | Lattice Semiconductor Corporation |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Low |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
Both companies face significant market risks due to high competition and rapid technological changes in the semiconductor industry. Notably, Silicon Laboratories has a higher operational risk, reflected in its negative profit margins, which may impact its stability in fluctuating market conditions.
Which one to choose?
In comparing Silicon Laboratories Inc. (SLAB) and Lattice Semiconductor Corporation (LSCC), LSCC emerges as the more favorable option. LSCC boasts higher profitability margins, with a net margin of 12% compared to SLAB’s negative margins, indicating better operational efficiency. LSCC’s solid current ratio of 3.66 suggests robust liquidity, while SLAB’s 6.15 ratio implies potential over-leverage. Analysts have rated LSCC at B-, reflecting a stronger overall performance, whereas SLAB is rated C-. Additionally, LSCC has shown a bullish stock trend with a 9.62% price change over the past year, compared to SLAB’s 4.25%.
Investors focused on growth may prefer LSCC, while those prioritizing risk management may find SLAB’s liquidity appealing. However, both companies face risks related to market dependence and competitive pressures in the semiconductor industry.
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:
