Financial Contrast: Pixelworks (NASDAQ:PXLW) & IQE (OTCMKTS:IQEPF)

Pixelworks (NASDAQ:PXLW) and IQE (OTCMKTS:IQEPF) 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 earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pixelworks	-73.07%	-318.32%	-12.03%
IQE	N/A	N/A	N/A

Earnings and Valuation

This table compares Pixelworks and IQE”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pixelworks	$690,000.00	51.62	-$22.50 million	($4.72)	-1.19
IQE	$150.84 million	5.18	-$48.79 million	N/A	N/A

Pixelworks has higher earnings, but lower revenue than IQE.

Risk & Volatility

Pixelworks has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, IQE has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pixelworks and IQE, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pixelworks	1	0	3	0	2.50
IQE	0	0	0	0	0.00

Pixelworks currently has a consensus target price of $15.00, indicating a potential upside of 167.86%. Given Pixelworks’ stronger consensus rating and higher probable upside, analysts clearly believe Pixelworks is more favorable than IQE.

Institutional & Insider Ownership

21.4% of Pixelworks shares are owned by institutional investors. 5.3% of Pixelworks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Pixelworks beats IQE on 8 of the 12 factors compared between the two stocks.

About Pixelworks

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 IQE

IQE plc, together with its subsidiaries, develops, manufactures, and sells advanced semiconductor materials. It operates through three segments: Wireless, Photonics, and CMOS++. The company manufactures and sells compound semiconductor materials for the wireless market which includes radio frequency devices for wireless communications, and photonics market, that includes applications that transmit and sense visible and infrared lights, as well as advanced semiconductor materials related to silicon. It operates in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. The company was founded in 1988 and is headquartered in Cardiff, the United Kingdom.