NeoMagic (OTCMKTS:NMGC) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Insider & Institutional Ownership
18.3% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 12.7% of NeoMagic shares are owned by insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are owned by 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.
Volatility and Risk
NeoMagic has a beta of -1.02, indicating that its share price is 202% less volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for NeoMagic and Taiwan Semiconductor Manufacturing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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NeoMagic | 0 | 0 | 0 | 0 | N/A |
Taiwan Semiconductor Manufacturing | 2 | 1 | 6 | 0 | 2.44 |
Taiwan Semiconductor Manufacturing has a consensus price target of $106.75, suggesting a potential downside of 7.43%. Given Taiwan Semiconductor Manufacturing's higher possible upside, analysts plainly believe Taiwan Semiconductor Manufacturing is more favorable than NeoMagic.
Earnings and Valuation
This table compares NeoMagic and Taiwan Semiconductor Manufacturing's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
NeoMagic | N/A | N/A | N/A | N/A | N/A |
Taiwan Semiconductor Manufacturing | $34.63 billion | 17.27 | $11.83 billion | $3.39 | 34.02 |
Taiwan Semiconductor Manufacturing has higher revenue and earnings than NeoMagic.
Profitability
This table compares NeoMagic and Taiwan Semiconductor Manufacturing's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
NeoMagic | N/A | N/A | N/A |
Taiwan Semiconductor Manufacturing | 37.94% | 28.73% | 20.16% |
Summary
Taiwan Semiconductor Manufacturing beats NeoMagic on 8 of the 9 factors compared between the two stocks.