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

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May 18, 2012
Everybody is talking about Facebook and the USD104 billion market valuation at revenues of nearly USD4 billion. But, what happens if Facebook’s growth slows before the company reaches the USD100 billion mark in revenues? You will never get the 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 USD300 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 one has a yield over 3 percent and the same number of stocks are recommended to buy.


Here are my favorite stocks:


CA (CA, Financial) 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.


Intel Corporation (INTC, Financial) 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.


Microsoft Corporation (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.


Corning Incorporated (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.


Take a closer look at the full table of technology stocks cheaper than Facebook (FB, Financial) with best dividend yields. The average 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.


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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· The Highest Dividends From The Technology Sector

· 16 Technology Dividend Stocks With High Growth

· 11 High Margin Technology Stocks With Best Dividends

· 33 Technology High Yields