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IT vs SMTC

IT
Gartner, Inc.
BEARISH
Price
$150.12
Market Cap
$10.13B
Sector
Technology
AI Confidence
85%
SMTC
Semtech Corporation
BEARISH
Price
$107.71
Market Cap
$10.01B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
IT
15.56
SMTC
--
Forward P/E
IT
10.2
SMTC
36.99
P/B Ratio
IT
33.25
SMTC
18.16
P/S Ratio
IT
1.56
SMTC
9.54
EV/EBITDA
IT
9.31
SMTC
63.37

Profitability

Gross Margin
IT
68.39%
SMTC
52.51%
Operating Margin
IT
18.98%
SMTC
9.86%
Profit Margin
IT
11.22%
SMTC
-3.84%
ROE
IT
86.86%
SMTC
-7.39%
ROA
IT
8.86%
SMTC
5.45%

Growth

Revenue Growth
IT
2.2%
SMTC
9.3%
Earnings Growth
IT
-34.2%
SMTC
--

Financial Health

Debt/Equity
IT
10.47
SMTC
0.94
Current Ratio
IT
1.0
SMTC
2.37
Quick Ratio
IT
0.85
SMTC
1.42

Dividends

Dividend Yield
IT
--
SMTC
--
Payout Ratio
IT
0.0%
SMTC
0.0%

AI Verdict

IT BEARISH

Gartner, Inc. (IT) exhibits significant financial instability characterized by a Piotroski F-Score of 4/9 (Stable) and a critical Debt/Equity ratio of 10.47. The stock is trading at a massive premium compared to its Graham Number ($31.31) and Intrinsic Value ($67.55), while experiencing a catastrophic 1-year price decline of 63.9%. Despite a low forward P/E of 10.20, the combination of crashing earnings growth (-34.2% YoY) and extreme leverage makes the current valuation unsustainable.

Strengths
Strong Gross Margins (68.39%)
High Return on Equity (86.86%)
Low Forward P/E ratio (10.20) relative to sector
Risks
Extreme leverage with a Debt/Equity ratio of 10.47
Severe negative earnings growth (-34.2% YoY)
Price is trading significantly above both Graham and Intrinsic value estimates
SMTC BEARISH

SMTC exhibits a critical divergence between market sentiment and fundamental health, highlighted by a weak Piotroski F-Score of 2/9. While analysts maintain a 'strong_buy' rating and the stock has seen massive 1-year gains (+310.5%), the underlying financials show negative profit margins (-3.84%) and an extreme Price-to-Book ratio of 18.16. This valuation is further undermined by bearish insider activity from the CEO and CFO and a technical trend score of 10/100, suggesting the stock is significantly overextended.

Strengths
Strong gross margins at 52.51%
Healthy short-term liquidity with a current ratio of 2.37
Consistent track record of beating earnings estimates (3/4 last 4 quarters)
Risks
Severe fundamental weakness indicated by Piotroski F-Score of 2/9
Extreme valuation multiples (P/B of 18.16 and P/S of 9.54)
Negative net profit margin (-3.84%) and negative ROE (-7.39%)

Compare Another Pair

IT vs SMTC: Head-to-Head Comparison

This page compares Gartner, Inc. (IT) and Semtech Corporation (SMTC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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