MagnaChip Semiconductor (NYSE:MX) and EMCORE (NASDAQ:EMKR) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Insider & Institutional Ownership
97.2% of MagnaChip Semiconductor shares are held by institutional investors. Comparatively, 54.3% of EMCORE shares are held by institutional investors. 5.2% of MagnaChip Semiconductor shares are held by company insiders. Comparatively, 1.4% of EMCORE shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for MagnaChip Semiconductor and EMCORE, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| MagnaChip Semiconductor | 0 | 1 | 4 | 0 | 2.80 |
| EMCORE | 0 | 0 | 2 | 0 | 3.00 |
MagnaChip Semiconductor currently has a consensus target price of $26.25, suggesting a potential upside of 22.72%. EMCORE has a consensus target price of $5.60, suggesting a potential downside of 10.54%. Given MagnaChip Semiconductor's higher probable upside, equities analysts clearly believe MagnaChip Semiconductor is more favorable than EMCORE.
Earnings & Valuation
This table compares MagnaChip Semiconductor and EMCORE's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| MagnaChip Semiconductor | $792.20 million | 0.96 | $-21,830,000.00 | $0.48 | 44.56 |
| EMCORE | $110.13 million | 2.07 | $-7,000,000.00 | ($0.24) | -26.08 |
EMCORE has lower revenue, but higher earnings than MagnaChip Semiconductor. EMCORE is trading at a lower price-to-earnings ratio than MagnaChip Semiconductor, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MagnaChip Semiconductor and EMCORE's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| MagnaChip Semiconductor | 47.11% | 38.96% | 3.80% |
| EMCORE | -6.33% | -9.18% | -5.84% |
Risk and Volatility
MagnaChip Semiconductor has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Summary
MagnaChip Semiconductor beats EMCORE on 10 of the 14 factors compared between the two stocks.
