Analog Devices (NASDAQ: ADI) and MagnaChip Semiconductor Corporation (NYSE:MX) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Analog Devices and MagnaChip Semiconductor Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Analog Devices 14.77% 19.06% 8.78%
MagnaChip Semiconductor Corporation 2.25% N/A -2.59%

Institutional and Insider Ownership

86.7% of Analog Devices shares are held by institutional investors. Comparatively, 93.5% of MagnaChip Semiconductor Corporation shares are held by institutional investors. 1.1% of Analog Devices shares are held by insiders. Comparatively, 3.8% of MagnaChip Semiconductor Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Analog Devices and MagnaChip Semiconductor Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Analog Devices $4.01 billion 7.36 $1.55 billion $2.09 38.49
MagnaChip Semiconductor Corporation $701.15 million 0.54 $43.67 million $0.24 46.25

Analog Devices has higher revenue and earnings than MagnaChip Semiconductor Corporation. Analog Devices is trading at a lower price-to-earnings ratio than MagnaChip Semiconductor Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Analog Devices and MagnaChip Semiconductor Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Analog Devices 0 9 16 0 2.64
MagnaChip Semiconductor Corporation 0 1 2 0 2.67

Analog Devices presently has a consensus target price of $93.18, indicating a potential upside of 15.84%. MagnaChip Semiconductor Corporation has a consensus target price of $12.00, indicating a potential upside of 8.11%. Given Analog Devices’ higher possible upside, equities research analysts clearly believe Analog Devices is more favorable than MagnaChip Semiconductor Corporation.

Dividends

Analog Devices pays an annual dividend of $1.80 per share and has a dividend yield of 2.2%. MagnaChip Semiconductor Corporation does not pay a dividend. Analog Devices pays out 86.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Analog Devices has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, MagnaChip Semiconductor Corporation has a beta of -0.37, meaning that its stock price is 137% less volatile than the S&P 500.

Summary

Analog Devices beats MagnaChip Semiconductor Corporation on 11 of the 15 factors compared between the two stocks.

About Analog Devices

Analog Devices, Inc. (Analog Devices) designs, manufactures and markets a portfolio of solutions that leverage high-performance analog, mixed-signal and digital signal processing technology, including integrated circuits (ICs), algorithms, software and subsystems. Its products include Analog Products, Converters, Amplifiers/Radio Frequency, Other Analog, Power Management and Reference, and Digital Signal Processing Products. The Company is a supplier of data converter products. The Company is a supplier of high-performance amplifiers. Its analog product line also includes products of high performance radio frequency (RF) ICs. The Company’s DSPs are used for high-speed numeric calculations. The Company offers its products for applications in various end markets, such as industrial, automotive, consumer and communications. The Company operates in the United States, Rest of North/South America, Europe, Japan and China.

About MagnaChip Semiconductor Corporation

MagnaChip Semiconductor Corporation is a designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of Things (IoT) applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile memory and Radio Frequency (RF) applications. The Company has two segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides analog and mixed-signal foundry services to semiconductor companies and Integrated Device Manufacturers (IDMs) that serve consumer, computing, communication, industrial, automotive and IoT applications. The Company manufactures wafers-based on its customers’ product designs. The Company’s Standard Products Group includes its Display Solutions and Power Solutions business lines.

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