5/17/2012

Facebook Is Too Expensive! These Technology Stocks Create A Better Shareholder Value

Technology Stocks With Low P/E Ratios An Best Dividends Researched By Dividend Yield - Stock, Capital, Investment. Everybody is talking about Facebook and the USD 104 billion market valuation at revenues of nearly USD 4 billion. But, what happens if Facebook’s growth slows before the company reaches the USD 100 billion mark in revenues? You will never get investment back.

If you like to invest in stocks with a higher degree of safeness, you should take a look at stocks from forgotten industries like the wireless communication industry. Certainly, the growth is not as high as the growth of social network companies or software stocks but they pay a much higher dividend and it helps you to hedge your investment. What alternatives are available within the dividend category?

However, I made a screen of the best yielding U.S. based technology stocks with a low P/E ratio (below 15) and a market capitalization over USD 300 million. Below the results are many semiconductor stocks. If you include stocks from abroad, you find a lot of stocks with high yields from the telecom services industry. Eighteen stocks remained of which eleven have a yield over three percent and the same number of stocks are recommended to buy.

Here are my favorite stocks:
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CA (NASDAQ:CA) has a market capitalization of $12.10 billion. The company employs 13,600 people, generates revenues of $4,814.00 million and has a net income of $938.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,796.00 million. Because of these figures, the EBITDA margin is 37.31 percent (operating margin 28.85 percent and the net profit margin finally 19.48 percent). 


Financial Analysis: The total debt representing 12.00 percent of the company’s assets and the total debt in relation to the equity amounts to 26.68 percent. Due to the financial situation, a return on equity of 16.83 percent was realized. Twelve trailing months earnings per share reached a value of $1.91. Last fiscal year, the company paid $0.40 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.46, P/S ratio 2.52 and P/B ratio 2.22. Dividend Yield: 3.89 percent. The beta ratio is 1.02.


Long-Term Stock History Chart Of CA, Inc. (Click to enlarge)
Long-Term Dividends History of CA, Inc. (CA) (Click to enlarge)
Long-Term Dividend Yield History of CA, Inc. (NASDAQ: CA) (Click to enlarge)


Intel Corporation (NASDAQ:INTC) has a market capitalization of $131.76 billion. The company employs 100,800 people, generates revenues of $53,999.00 million and has a net income of $12,942.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23,409.00 million. Because of these figures, the EBITDA margin is 43.35 percent (operating margin 32.12 percent and the net profit margin finally 23.97 percent). 


Financial Analysis: The total debt representing 10.31 percent of the company’s assets and the total debt in relation to the equity amounts to 15.97 percent. Due to the financial situation, a return on equity of 27.15 percent was realized. Twelve trailing months earnings per share reached a value of $2.36. Last fiscal year, the company paid $0.78 in form of dividends to shareholders. 


Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.09, P/S ratio 2.47 and P/B ratio 2.89. Dividend Yield: 3.17 percent. The beta ratio is 1.08.


Long-Term Stock History Chart Of Intel Corporation (Click to enlarge)
Long-Term Dividends History of Intel Corporation (INTC) (Click to enlarge)
Long-Term Dividend Yield History of Intel Corporation (NASDAQ: INTC) (Click to enlarge)


Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $249.67 billion. The company employs 90,000 people, generates revenues of $69,943.00 million and has a net income of $23,150.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,927.00 million. Because of these figures, the EBITDA margin is 42.79 percent (operating margin 38.83 percent and the net profit margin finally 33.10 percent). 


Financial Analysis: The total debt representing 10.97 percent of the company’s assets and the total debt in relation to the equity amounts to 20.88 percent. Due to the financial situation, a return on equity of 44.84 percent was realized. Twelve trailing months earnings per share reached a value of $2.75. Last fiscal year, the company paid $0.64 in form of dividends to shareholders. 


Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.81, P/S ratio 3.59 and P/B ratio 4.39. Dividend Yield: 2.68 percent. The beta ratio is 1.00.


Long-Term Stock History Chart Of Microsoft Corpora... (Click to enlarge)
Long-Term Dividends History of Microsoft Corpora... (MSFT) (Click to enlarge)
Long-Term Dividend Yield History of Microsoft Corpora... (NASDAQ: MSFT) (Click to enlarge)


Corning Incorporated (NYSE: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 percent (operating margin 21.47 percent and the net profit margin finally 35.55 percent). 


Financial Analysis: The total debt representing 8.59 percent of the company’s assets and the total debt in relation to the equity amounts to 11.34 percent. Due to the financial situation, a return on equity of 13.87 percent 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 percent. The beta ratio is 1.41.


Long-Term Stock History Chart Of Corning Incorporated (Click to enlarge)
Long-Term Dividends History of Corning Incorporated (GLW) (Click to enlarge)
Long-Term Dividend Yield History of Corning Incorporated (NYSE: GLW) (Click to enlarge)


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 percent. Price to book ratio is 1.80 and price to sales ratio 1.66. The operating margin amounts to 20.27 percent. Companies from the screen grew 6.31 percent yearly over the recent half decade.

Here is the full table with some fundamentals (TTM):

18 Cheap Technology Dividend Stocks (Click to enlarge)


Related stock ticker symbols:
LXK, CA, XLS, MOLX, MANT, JCOM, AMAT, ADI, BRKS, INTC, KLAC, AVX, MSFT, MTSC, TDS, GLW, DNB, HPQ

Selected Articles:

* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

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