Comparing Pixelworks (NASDAQ:PXLW) & Magnachip Semiconductor (NYSE:MX)

Pixelworks (NASDAQ:PXLWGet Rating) and Magnachip Semiconductor (NYSE:MXGet Rating) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Pixelworks and Magnachip Semiconductor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pixelworks 0 1 3 0 2.75
Magnachip Semiconductor 0 0 2 0 3.00

Pixelworks currently has a consensus target price of $7.67, indicating a potential upside of 243.80%. Magnachip Semiconductor has a consensus target price of $25.00, indicating a potential upside of 55.09%. Given Pixelworks’ higher possible upside, equities research analysts clearly believe Pixelworks is more favorable than Magnachip Semiconductor.

Profitability

This table compares Pixelworks and Magnachip Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pixelworks -26.16% -23.80% -10.33%
Magnachip Semiconductor 16.19% 10.61% 8.20%

Volatility and Risk

Pixelworks has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500. Comparatively, Magnachip Semiconductor has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Pixelworks and Magnachip Semiconductor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pixelworks $55.10 million 2.19 -$19.82 million ($0.31) -7.19
Magnachip Semiconductor $474.23 million 1.53 $56.71 million $1.55 10.40

Magnachip Semiconductor has higher revenue and earnings than Pixelworks. Pixelworks is trading at a lower price-to-earnings ratio than Magnachip Semiconductor, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

38.6% of Pixelworks shares are held by institutional investors. Comparatively, 70.9% of Magnachip Semiconductor shares are held by institutional investors. 3.7% of Pixelworks shares are held by insiders. Comparatively, 4.1% of Magnachip Semiconductor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Magnachip Semiconductor beats Pixelworks on 10 of the 14 factors compared between the two stocks.

About Pixelworks

(Get Rating)

Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home entertainment, content, and business and education markets. The company provides video display processor products, including image processor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; video co-processor integrated circuits that work with an image processor to post-process video signals to enhance the performance or feature set of the overall video solution; and transcoder integrated circuits, which comprise embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing for converting bitrates, resolutions, and codecs. As of March 31, 2022, it had an intellectual property portfolio of 334 patents related to the visual display of digital image data. The company sells its through a direct sales force, distributors, and manufacturers' representatives in Japan, China, Taiwan, the United States, Europe, and Korea. Pixelworks, Inc. was incorporated in 1997 and is based in Portland, Oregon.

About Magnachip Semiconductor

(Get Rating)

Magnachip Semiconductor Corporation, together with its subsidiaries, designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions for communications, the Internet of Things, consumer, industrial, and automotive applications. It provides display solutions, including source and gate drivers, and timing controllers that cover a range of flat panel displays used in mobile communications, automotive, entertainment devices, notebook PCs, monitors and liquid crystal displays, and micro light-emitting diode (LED) televisions. The company also offers metal oxide semiconductor field-effect transistors, insulated-gate bipolar transistors, AC-DC converters, DC-DC converters, LED drivers, regulators, and power management integrated circuits for a range of devices comprising televisions, smartphones, mobile phones, wearable devices, desktop PCs, notebooks, tablet PCs, and other consumer electronics, as well as for power suppliers, e-bike, photovoltaic inverter, LED lighting, motor drive, and home appliances; and organic light-emitting diode display driver integrated circuits for OLED TVs. It serves consumer, computing, and industrial electronics original equipment manufacturers, original design manufacturers, and electronics manufacturing services companies, as well as subsystem designers in Korea, the Asia Pacific, the United States, Europe, and internationally. The company sells its products through a direct sales force, as well as through a network of agents and distributors. Magnachip Semiconductor Corporation was incorporated in 2004 and is based in Luxembourg, Luxembourg.

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