First Solar (NASDAQ:FSLR) and Himax Technologies (NASDAQ:HIMX) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
Volatility and Risk
First Solar has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Himax Technologies has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.
Profitability
This table compares First Solar and Himax Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| First Solar | 6.38% | 9.49% | 6.95% |
| Himax Technologies | 1.80% | 3.44% | 1.78% |
Earnings & Valuation
This table compares First Solar and Himax Technologies' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| First Solar | $3.06 billion | 3.01 | $-114,930,000.00 | $1.48 | 58.71 |
| Himax Technologies | $671.84 million | 3.62 | $-13,610,000.00 | ($0.07) | -201.86 |
Himax Technologies has lower revenue, but higher earnings than First Solar. Himax Technologies is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for First Solar and Himax Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| First Solar | 7 | 7 | 3 | 0 | 1.76 |
| Himax Technologies | 0 | 1 | 3 | 0 | 2.75 |
First Solar currently has a consensus target price of $93.3750, suggesting a potential upside of 8.30%. Himax Technologies has a consensus target price of $9.3333, suggesting a potential downside of 34.09%. Given First Solar's higher probable upside, analysts plainly believe First Solar is more favorable than Himax Technologies.
Insider & Institutional Ownership
67.7% of First Solar shares are owned by institutional investors. Comparatively, 12.0% of Himax Technologies shares are owned by institutional investors. 0.5% of First Solar shares are owned by company insiders. Comparatively, 31.5% of Himax Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
First Solar beats Himax Technologies on 7 of the 13 factors compared between the two stocks.
