Critical Contrast: Pixelworks (NASDAQ:PXLW) & Silvaco Group (NASDAQ:SVCO)

Pixelworks (NASDAQ:PXLWGet Free Report) and Silvaco Group (NASDAQ:SVCOGet Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

21.4% of Pixelworks shares are held by institutional investors. 5.3% of Pixelworks shares are held by insiders. Comparatively, 38.4% of Silvaco Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Pixelworks and Silvaco Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pixelworks 0 0 3 0 3.00
Silvaco Group 0 0 5 0 3.00

Pixelworks currently has a consensus target price of $11.67, suggesting a potential upside of 1.27%. Silvaco Group has a consensus target price of $14.20, suggesting a potential upside of 180.08%. Given Silvaco Group’s higher possible upside, analysts plainly believe Silvaco Group is more favorable than Pixelworks.

Risk and Volatility

Pixelworks has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Silvaco Group has a beta of 3.13, indicating that its share price is 213% more volatile than the S&P 500.

Profitability

This table compares Pixelworks and Silvaco Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pixelworks -82.36% -300.58% -43.46%
Silvaco Group -56.53% -14.47% -9.44%

Valuation and Earnings

This table compares Pixelworks and Silvaco Group”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pixelworks $43.21 million 1.42 -$28.72 million ($5.59) -2.06
Silvaco Group $59.68 million 2.58 -$39.40 million ($1.08) -4.69

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

Summary

Silvaco Group beats Pixelworks on 10 of the 13 factors compared between the two stocks.

About Pixelworks

(Get Free Report)

Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets in the United States, Japan, China, Taiwan, Korea, and Europe. The company offers imageprocessor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; visual processor integrated circuits that works with a mobile application processor; and transcoder integrated circuits which includes software that control the operations and signal processing for converting multiple bitrates, resolutions and codecs to provide bandwidth efficient video transmissions based on industry standard protocols. It also provides software and platform licensing products comprising Pixelworks Pro Software, a software that enables development and customize the look and feel of mobile products by use of various features, such as absolute color accuracy, HDR tone mapping, SDR-to-HDR conversion, and others; and TrueCut Motion Platform, content creation tool which provides the ability to dial in a motion look on a shot-by-shot basis. The company distributes its products to integrators, branded manufacturers, and branded suppliers. Pixelworks, Inc. was founded in 1997 and is based in Portland, Oregon.

About Silvaco Group

(Get Free Report)

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.

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