Facebook Alternatives: Techs That Perform
Dividend Yield | May 18, 2012 05:55AM ET
Everybody is talking about Facebook and its USD 104 billion market valuation on revenues of nearly USD 4 billion. But what happens if the young site’s growth slows before the company reaches the USD 100 billion mark in revenues? Say goodbye to your investment.
If you like to invest in stocks with a higher degree of safety, take a look at a few from forgotten industries like wireless communication. Certainly, growth is not as high as social-network companies or software stocks, but they pay a much higher dividend, which is a good hedge on your investment.
What alternatives are available within the dividend category? I took a look at some of the best yielding U.S.-based technology stocks with low P/E ratios (below 15) and market caps over USD 300 million. What I found was more than a few semiconductor stocks. If you include companies from abroad, you find a lot with high yields, particularly in the telecom-services industry. I pared the list to 18, of which eleven showed a yield over 3% and a buy rating to boot.
CA (NASDAQ:GLW ) has a market capitalization of $19.43 billion. The company employs 28,800 people, generates revenues of $7,890.00 million and has a net income of $2,805.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,651.00 million. Because of these figures, the EBITDA margin is 33.60% (operating margin 21.47% and the net profit margin finally 35.55%).
Financial Analysis: The total debt representing 8.59% of the company’s assets and the total debt in relation to the equity amounts to 11.34%. Due to the financial situation, a return on equity of 13.87% was realized. Twelve trailing months earnings per share reached a value of $1.60. Last fiscal year, the company paid $0.23 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.01, P/S ratio 2.49 and P/B ratio 0.93. Dividend Yield: 2.32%. The beta ratio is 1.41.
Take a closer look at the full table of technology stocks cheaper than facebook with best diviend yields. The average price to earnings ratio (P/E ratio) amounts to 9.93 and forward P/E ratio is 9.60. The dividend yield has a value of 3.15%. Price to book ratio is 1.80 and price to sales ratio 1.66. The operating margin amounts to 20.27%. Companies from the screen grew 6.31% yearly over the recent half decade.
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Here is the full table with some fundamentals (TTM):
Related stock ticker symbols:
LXK, CA, XLS, MOLX, MANT, JCOM, AMAT, ADI, BRKS, INTC, KLAC, AVX, MSFT, MTSC, TDS, GLW, DNB, HPQ
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