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A company’s owners (or, shareholders) have very different goals than company management. Specifically, a company’s owners seek to maximize the value of the company, while company management often wishes to maximize personal wealth.

Corporate governance policies mitigate these differences and protect shareholder interests, but some companies have stronger policies than others.

Companies with stronger corporate governance policies are viewed as safer investments to shareholders over the long term. Institutional Shareholder Services (ISS) gives ratings for four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

We ran a screen on the semiconductor industry for stocks with “low concern” ratings on all four corporate governance ratings from ISS.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies are being run well? Use this list as a starting point for your own analysis.

List sorted by market cap.

1. Intel Corporation (NASDAQ:INTC): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap of $118.69B. According to ISS, the company has "low concern" ratings in all four corporate governance categories. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.6%, current ratio at 2.24, and quick ratio at 1.91. It's been a rough couple of days for the stock, losing 9.16% over the last week.

2. Texas Instruments Inc. (NASDAQ:TXN): Engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. Market cap of $32.04B. According to ISS, the company has "low concern" ratings in all four corporate governance categories. It's been a rough couple of days for the stock, losing 8.58% over the last week.

3. Altera Corp. (NASDAQ:ALTR): Designs, manufactures, and markets programmable logic devices (plds); structured application-specific integrated circuit devices; predefined design building blocks or intellectual-property cores; and associated development tools. Market cap of $10.88B. According to ISS, the company has "low concern" ratings in all four corporate governance categories. Might be undervalued at current levels, with a PEG ratio at 0.86, and P/FCF ratio at 13.05. It's been a rough couple of days for the stock, losing 6.79% over the last week.

4. Cypress Semiconductor Corporation (NASDAQ:CY): Operates as a semiconductor company in the United States and internationally. Market cap of $2.55B. According to ISS, the company has "low concern" ratings in all four corporate governance categories. The stock is currently stuck in a downtrend, trading 8.37% below its SMA20, 7.68% below its SMA50, and 12.28% below its SMA200. It's been a rough couple of days for the stock, losing 12.76% over the last week.

5. Diodes Incorporated (NASDAQ:DIOD): Makes and distributes standard semiconductor products to manufacturers in the consumer electronic, computer, communications, industrial, and automotive markets. Market cap of $880.01M. According to ISS, the company has "low concern" ratings in all four corporate governance categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.15). The stock is a short squeeze candidate, with a short float at 13.85% (equivalent to 12.39 days of average volume). It's been a rough couple of days for the stock, losing 9.05% over the last week.

6. Amkor Technology, Inc. (NASDAQ:AMKR): Provides outsourced semiconductor packaging and test services in the United States and internationally. Market cap of $740.90M. According to ISS, the company has "low concern" ratings in all four corporate governance categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.25). Might be undervalued at current levels, with a PEG ratio at 0.85, and P/FCF ratio at 12.76. The stock is a short squeeze candidate, with a short float at 18.28% (equivalent to 6.43 days of average volume). It's been a rough couple of days for the stock, losing 13.71% over the last week.

*ISS ratings sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 6 Semiconductor Stocks With Strong Corporate Governance