MagnaChip Semiconductor (NYSE:MX) and SPI Energy (NASDAQ:SPI) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Earnings and Valuation
This table compares MagnaChip Semiconductor and SPI Energy's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
MagnaChip Semiconductor | $792.20 million | 0.85 | $-21,830,000.00 | $0.48 | 39.65 |
SPI Energy | $97.88 million | 1.97 | $-15,260,000.00 | N/A | N/A |
SPI Energy has lower revenue, but higher earnings than MagnaChip Semiconductor.
Analyst Recommendations
This is a summary of current recommendations and price targets for MagnaChip Semiconductor and SPI Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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MagnaChip Semiconductor | 0 | 1 | 4 | 0 | 2.80 |
SPI Energy | 0 | 0 | 0 | 0 | N/A |
MagnaChip Semiconductor presently has a consensus target price of $26.25, suggesting a potential upside of 37.94%. Given MagnaChip Semiconductor's higher possible upside, analysts clearly believe MagnaChip Semiconductor is more favorable than SPI Energy.
Risk and Volatility
MagnaChip Semiconductor has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, SPI Energy has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
97.2% of MagnaChip Semiconductor shares are held by institutional investors. Comparatively, 6.3% of SPI Energy shares are held by institutional investors. 5.2% of MagnaChip Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares MagnaChip Semiconductor and SPI Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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MagnaChip Semiconductor | 47.11% | 38.96% | 3.80% |
SPI Energy | N/A | N/A | N/A |
Summary
MagnaChip Semiconductor beats SPI Energy on 9 of the 11 factors compared between the two stocks.