Meanwhile, STMicroelectronics N.V. (ADR) (NYSE:STM) also has strong sales relationships with some of the largest companies in the world. In addition, the company has been selling off low-margin businesses in an attempt to boost profitability.
However, STMicroelectronics N.V. (ADR) (NYSE:STM) is essentially controlled by the French and Italian governments; companies controlled by the two governments own 27.5% of STMicroelectronics and the French government has veto power over all board decisions. Investors who wish to own companies that allocate capital efficiently would be wise to avoid stocks that are controlled by a socialist government.
Texas Instruments Incorporated (NASDAQ:TXN) and STMicroelectronics N.V. (ADR) (NYSE:STM) are both in better shape than Marvell at the moment, but the risk/reward ratio clearly favors the latter. Marvell Technology Group Ltd. (NASDAQ:MRVL) is a recovering semiconductor company that is returning massive amounts of capital to shareholders as it continues to innovate — it is hard to come up with a better investment than that.
The article This Stuggling Semiconductor Business Offers Huge Upside originally appeared on Fool.com and is written by Ted Cooper.
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