MagnaChip Semiconductor Corporation (NYSE: MX) and NXP Semiconductors N.V. (NASDAQ:NXPI) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares MagnaChip Semiconductor Corporation and NXP Semiconductors N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MagnaChip Semiconductor Corporation 2.25% N/A -2.59%
NXP Semiconductors N.V. 16.87% 16.15% 7.85%

Analyst Recommendations

This is a breakdown of current ratings and target prices for MagnaChip Semiconductor Corporation and NXP Semiconductors N.V., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MagnaChip Semiconductor Corporation 0 1 1 0 2.50
NXP Semiconductors N.V. 0 16 0 1 2.12

MagnaChip Semiconductor Corporation currently has a consensus target price of $13.00, indicating a potential upside of 26.83%. NXP Semiconductors N.V. has a consensus target price of $110.19, indicating a potential downside of 5.65%. Given MagnaChip Semiconductor Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe MagnaChip Semiconductor Corporation is more favorable than NXP Semiconductors N.V..

Insider & Institutional Ownership

93.9% of MagnaChip Semiconductor Corporation shares are held by institutional investors. Comparatively, 78.8% of NXP Semiconductors N.V. shares are held by institutional investors. 3.8% of MagnaChip Semiconductor Corporation shares are held 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.

Valuation & Earnings

This table compares MagnaChip Semiconductor Corporation and NXP Semiconductors N.V.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MagnaChip Semiconductor Corporation $701.15 million 0.50 $43.67 million $0.24 42.71
NXP Semiconductors N.V. $9.32 billion 3.15 $2.70 billion $4.56 25.61

NXP Semiconductors N.V. has higher revenue and earnings than MagnaChip Semiconductor Corporation. NXP Semiconductors N.V. 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.

Volatility and Risk

MagnaChip Semiconductor Corporation has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500. Comparatively, NXP Semiconductors N.V. has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Summary

NXP Semiconductors N.V. beats MagnaChip Semiconductor Corporation on 9 of the 15 factors compared between the two stocks.

MagnaChip Semiconductor Corporation Company Profile

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.

NXP Semiconductors N.V. Company Profile

NXP Semiconductors N.V. (NXP) is a holding company. The Company operates as a semiconductor company. The Company provides high performance mixed signal and standard product solutions. The Company’s segments are High Performance Mixed Signal (HPMS), Standard Products (SP), and Corporate and Other. Its product solutions are used in a range of end-market applications, including automotive, personal security and identification, wireless and wireline infrastructure, mobile communications, multi-market industrial, consumer and computing. It engages with global original equipment manufacturers (OEMs) and sells products in all geographic regions. NXP’s HPMS segment includes business lines, such as Automotive, Secure Identification Solutions (SIS), Secure Connected Devices (SCD), and Secure Interfaces and Infrastructure (SI&I). The Company’s SP segment supplies a range of standard semiconductor components, such as small signal discretes and power discretes.

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