In the ever-evolving world of semiconductors, two companies stand out: STMicroelectronics N.V. (STM) and Lattice Semiconductor Corporation (LSCC). Both firms operate within the same industry, yet they adopt distinct strategies for innovation and market penetration. STM focuses on a diverse range of semiconductor products, while LSCC specializes in field programmable gate arrays and video connectivity solutions. As we delve into their business models, financial performance, and growth potential, I invite you to discover which company may be the more compelling investment opportunity for your portfolio.
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Company Overview
STMicroelectronics N.V. Overview
STMicroelectronics N.V. (STM) is a leading global semiconductor company founded in 1987 and headquartered in Schiphol, the Netherlands. The company’s mission is to drive innovation by designing and manufacturing a wide range of semiconductor products that cater to various sectors, including automotive, industrial, personal electronics, and communications. With a market capitalization of approximately $20.5B, STM operates through distinct segments, including Automotive and Discrete, Analog, MEMS and Sensors, and Microcontrollers and Digital ICs. The firm is recognized for its commitment to sustainability and technological advancement, providing solutions that enhance connectivity and efficiency in everyday applications.
Lattice Semiconductor Corporation Overview
Lattice Semiconductor Corporation (LSCC), established in 1983 and based in Hillsboro, Oregon, focuses on developing innovative semiconductor solutions, particularly field programmable gate arrays (FPGAs). With a market cap of around $9.6B, Lattice aims to empower designers in communications, computing, consumer electronics, and industrial markets by offering versatile and low-power products. The company’s strategic emphasis on video connectivity and licensing technology further distinguishes its position in the semiconductor industry. Lattice’s commitment to delivering customizable solutions positions it as a key player in the evolving landscape of semiconductor technology.
Key similarities and differences
Both STMicroelectronics and Lattice Semiconductor operate in the semiconductor industry, focusing on providing innovative solutions. However, while STM offers a broader spectrum of products across various segments, including automotive and industrial applications, Lattice specializes in FPGAs and video connectivity solutions. This distinction highlights STM’s larger market reach compared to Lattice’s focused product offering, catering to specific design needs in various sectors.
Income Statement Comparison
The following table presents a comparative analysis of the income statements for STMicroelectronics N.V. and Lattice Semiconductor Corporation for their most recent fiscal years.
| Metric | STMicroelectronics (STM) | Lattice Semiconductor (LSCC) |
|---|---|---|
| Market Cap | 20.51B | 9.60B |
| Revenue | 13.27B | 0.51B |
| EBITDA | 3.72B | 0.11B |
| EBIT | 1.96B | 0.06B |
| Net Income | 1.56B | 0.06B |
| EPS | 1.73 | 0.44 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, STMicroelectronics reported a revenue of 13.27B, down from 17.29B in the previous year, indicating a declining trend. Despite this, their net income of 1.56B showcases a strong profit margin, albeit lower than last year’s 4.21B. On the other hand, Lattice Semiconductor experienced a decrease in revenue from 0.74B to 0.51B, with net income also declining to 0.06B. Both companies faced challenges in maintaining growth, with STMicroelectronics showing more resilience in profitability margins relative to Lattice. The overall performance suggests a cautious outlook for investors in the semiconductor sector, highlighting the importance of risk management amidst fluctuating market conditions.
Financial Ratios Comparison
The following table presents a comparison of key financial ratios for STMicroelectronics N.V. (STM) and Lattice Semiconductor Corporation (LSCC) based on the most recent data available.
| Metric | STM | LSCC |
|---|---|---|
| ROE | 25.17% | 37.44% |
| ROIC | 19.47% | 7.75% |
| P/E | 10.76 | 36.67 |
| P/B | 1.29 | 13.73 |
| Current Ratio | 3.11 | 3.66 |
| Quick Ratio | 2.37 | 2.62 |
| D/E | 0.18 | 0.02 |
| Debt-to-Assets | 12.80% | 1.94% |
| Interest Coverage | 19.72 | 129.54 |
| Asset Turnover | 0.54 | 0.60 |
| Fixed Asset Turnover | 1.22 | 7.62 |
| Payout ratio | 18.50% | 0.00% |
| Dividend yield | 1.28% | 0.00% |
Interpretation of Financial Ratios
STM exhibits strong operating efficiency and profitability, highlighted by a robust ROE of 25.17% and a low P/E ratio of 10.76, suggesting undervaluation. Conversely, LSCC, while showcasing impressive ROE of 37.44%, carries a significantly higher P/E ratio at 36.67, indicating potential market overvaluation. The low debt levels in LSCC are favorable; however, STM’s higher interest coverage ratio reflects a robust capacity to manage its debt obligations.
Dividend and Shareholder Returns
STMicroelectronics (STM) pays a dividend with a yield of approximately 1.28% and a payout ratio of 18.5%, indicating sustainable distributions supported by strong free cash flow. The company also engages in share buybacks, enhancing shareholder value. In contrast, Lattice Semiconductor (LSCC) does not pay dividends, likely due to its reinvestment strategy and focus on growth. However, LSCC’s active share buyback program signals its commitment to returning value to shareholders. Overall, STM’s dividend policy supports long-term value creation, while LSCC’s approach aligns with its growth ambitions.
Strategic Positioning
In the competitive semiconductor market, STMicroelectronics N.V. (STM) holds a significant market share with a diversified product portfolio spanning automotive, industrial, and consumer electronics. Its robust growth is influenced by increasing demand for IoT and automotive applications. Conversely, Lattice Semiconductor Corporation (LSCC), while smaller in market cap, focuses on niche programmable solutions and video connectivity, which positions it well against competitive pressures from larger firms. Both companies must navigate rapid technological disruptions to maintain their market relevance.
Stock Comparison
Over the past year, the stock prices of STMicroelectronics N.V. (STM) and Lattice Semiconductor Corporation (LSCC) have exhibited distinct trading dynamics, with STM facing significant declines while LSCC has shown moderate growth.
Trend Analysis
STMicroelectronics N.V. (STM) The stock has experienced a price change of -48.46% over the past year. This indicates a bearish trend, characterized by a deceleration in price movement. The highest price recorded was 47.17, while the lowest reached 18.49. The standard deviation of 8.0 suggests notable volatility in the stock’s price fluctuations.
In the recent analysis period from September 14, 2025, to November 30, 2025, STM’s price change was -11.27%, with a standard deviation of 2.37, confirming continued deceleration in the trend.
Lattice Semiconductor Corporation (LSCC) In contrast, LSCC has shown a price change of +8.7% over the past year, indicating a bullish trend despite a deceleration in growth rate. The stock reached a high of 80.45 and a low of 39.03, with a standard deviation of 9.95, reflecting moderate volatility.
From September 14, 2025, to November 30, 2025, LSCC’s price change was +9.0%, with a standard deviation of 3.23, supporting a sustained bullish sentiment during this period.
Analyst Opinions
Recent analyst recommendations for STMicroelectronics N.V. (STM) indicate a positive outlook with a rating of B+, suggesting a “buy” consensus. Analysts appreciate its solid return on assets and book value metrics. In contrast, Lattice Semiconductor Corporation (LSCC) has received a B- rating, indicating a “hold,” as analysts express concerns over its price-to-earnings and price-to-book ratios. The overall consensus for STM is buy, while LSCC remains more cautious, leaning towards hold.
Stock Grades
In the current market, reliable stock grades are available for two companies: STMicroelectronics N.V. (STM) and Lattice Semiconductor Corporation (LSCC). Let’s delve into their respective ratings.
STMicroelectronics N.V. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| TD Cowen | maintain | Buy | 2025-10-24 |
| Susquehanna | maintain | Positive | 2025-10-22 |
| Susquehanna | maintain | Positive | 2025-07-25 |
| Susquehanna | maintain | Positive | 2025-07-22 |
| Baird | upgrade | Outperform | 2025-07-22 |
| Jefferies | upgrade | Buy | 2025-02-19 |
| Bernstein | downgrade | Market Perform | 2025-02-05 |
| Susquehanna | maintain | Positive | 2025-01-31 |
| Barclays | downgrade | Underweight | 2025-01-22 |
| JP Morgan | downgrade | Neutral | 2024-12-09 |
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 maintain a strong sentiment in the market, with STM showing a mix of upgrades and downgrades, while LSCC consistently receives ‘Buy’ ratings from multiple reputable firms, indicating a robust investor confidence in its performance.
Target Prices
The consensus target prices for the selected companies indicate optimistic expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| STMicroelectronics N.V. (STM) | 45 | 22 | 33.38 |
| Lattice Semiconductor Corporation (LSCC) | 85 | 65 | 79 |
For STMicroelectronics, analysts expect a consensus price of 33.38, which is significantly above the current price of 22.99. Similarly, Lattice Semiconductor’s target consensus of 79 suggests strong growth potential compared to its current price of 70.21.
Strengths and Weaknesses
Below is a comparative table highlighting the strengths and weaknesses of STMicroelectronics N.V. (STM) and Lattice Semiconductor Corporation (LSCC):
| Criterion | STM | LSCC |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong (24%) | Moderate (35%) |
| Innovation | High | Moderate |
| Global presence | Strong | Limited |
| Market Share | Significant | Emerging |
| Debt level | Low (13%) | Extremely Low (2%) |
Key takeaways indicate that while STM showcases strong profitability and global presence, LSCC excels in its profit margins with a notably low debt level, making it an interesting option for investors seeking stability and growth.
Risk Analysis
In this section, I present an analysis of the key risks associated with two semiconductor companies, STMicroelectronics N.V. and Lattice Semiconductor Corporation.
| Metric | STMicroelectronics N.V. | Lattice Semiconductor Corporation |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | Low | Moderate |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | High | Moderate |
Both companies face significant market and geopolitical risks, particularly in light of ongoing supply chain issues and international trade tensions that could impact their operations and profitability.
Which one to choose?
When comparing STM (STMicroelectronics N.V.) and LSCC (Lattice Semiconductor Corporation), STM shows stronger fundamentals with a higher gross profit margin (39.3% vs. 66.8%) and better operating income performance. STM’s price-to-earnings ratio stands at 14.43, whereas LSCC’s is significantly higher at 132.74, indicating potential overvaluation for LSCC. Furthermore, STM has received a rating of B+, reflecting its solid performance, while LSCC holds a B- rating, suggesting moderate caution.
For investors focused on stability and quality, I would recommend STM due to its superior financial metrics and lower valuation ratios. Conversely, growth-oriented investors might be drawn to LSCC’s recent bullish trend, although they should be wary of its high valuation and potential market fluctuations.
Risks include competition, supply chain constraints, and market dependence affecting 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 STMicroelectronics N.V. and Lattice Semiconductor Corporation to enhance your investment decisions:
