Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, semiconductor image-sensor device specialist OmniVision Technologies (Nasdaq: OVTI ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at OmniVision's business and see what CAPS investors are saying about the stock right now.
OmniVision facts
| Headquarters (Founded) | Santa Clara, Calif. (1995) |
| Market Cap | $714 million |
| Industry | Semiconductors |
| Trailing-12-Month Revenue | $1.02 billion |
| Management | Co-Founder/Chairman/CEO Shaw Hong CFO Anson Chan |
| Return on Equity (Average, Past 3 Years) | 7% |
| Cash/Debt | $465 million / $49.8 million |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 880 members who have rated OmniVision believe the stock will outperform the S&P 500 going forward.
This past fall, one of those Fools, Jeffrey2012, nicely summed up the OmniVision opportunity:
It's trading below book value and is incredibly cash rich. Not to mention generating tons of cash. However, the only thing I do not like about this company is the way they keep diluting the shareholders with increasing share sales. But since almost their entire market cap is in cash ... [it] doesn't make me worried about this company going out anytime soon. Their business hiccups with the iphone 4s does not mean they won't have anymore business. ... [A] position here is almost without risk since it's buffered by so much cash.
But before you run out and start gobbling up shares, consider that some of OmniVision's peers might actually be better suited to your own individual investing profile.
STMicroelectronics (NYSE: STM ) , for example, has a higher expected five-year growth rate than OmniVision, so it might be better for growth-seekers looking for a bit more punch to their portfolio. Meanwhile, Avago Technologies (Nasdaq: AVGO ) boasts much higher operating margins, making it a good choice for investors who want "quality." And Micron Technology's (Nasdaq: MU ) much larger size might make it more suitable for conservative types. However, when you consider that OmniVision sports a paltry PEG of 0.6, the stock seems like a good choice for small-cap investors looking for growth on the cheap.
What do you think about OmniVision, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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