Head-To-Head Analysis: Microchip Technology (MCHP) and MagnaChip Semiconductor Corporation (MX)
Microchip Technology (NASDAQ: MCHP) and MagnaChip Semiconductor Corporation (NYSE:MX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.
Risk and Volatility
Microchip Technology has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, MagnaChip Semiconductor Corporation has a beta of -0.4, suggesting that its share price is 140% less volatile than the S&P 500.
Institutional & Insider Ownership
94.2% of MagnaChip Semiconductor Corporation shares are owned by institutional investors. 2.1% of Microchip Technology shares are owned by insiders. Comparatively, 3.8% of MagnaChip Semiconductor Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Microchip Technology and MagnaChip Semiconductor Corporation’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%|
Microchip Technology pays an annual dividend of $1.45 per share and has a dividend yield of 1.5%. MagnaChip Semiconductor Corporation does not pay a dividend. Microchip Technology pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Microchip Technology has raised its dividend for 15 consecutive years.
This is a breakdown of recent recommendations and price targets for Microchip Technology and MagnaChip Semiconductor Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MagnaChip Semiconductor Corporation||0||1||1||0||2.50|
Microchip Technology currently has a consensus target price of $91.59, indicating a potential downside of 3.39%. MagnaChip Semiconductor Corporation has a consensus target price of $13.00, indicating a potential upside of 25.60%. Given MagnaChip Semiconductor Corporation’s higher probable upside, analysts clearly believe MagnaChip Semiconductor Corporation is more favorable than Microchip Technology.
Earnings and Valuation
This table compares Microchip Technology 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|
|Microchip Technology||$3.58 billion||6.16||$1.25 billion||$1.87||50.70|
|MagnaChip Semiconductor Corporation||$701.15 million||0.50||$43.67 million||$0.24||43.13|
Microchip Technology has higher revenue and earnings than MagnaChip Semiconductor Corporation. MagnaChip Semiconductor Corporation is trading at a lower price-to-earnings ratio than Microchip Technology, indicating that it is currently the more affordable of the two stocks.
Microchip Technology beats MagnaChip Semiconductor Corporation on 12 of the 16 factors compared between the two stocks.
About Microchip Technology
Microchip Technology Incorporated is engaged in developing, manufacturing and selling specialized semiconductor products used by its customers for a range of embedded control applications. The Company operates through two segments: semiconductor products and technology licensing. In the semiconductor products segment, the Company designs, develops, manufactures and markets microcontrollers, development tools and analog, interface, mixed signal and timing products. Its functional activities include sales, marketing, manufacturing, information technology, human resources, legal and finance. Its product portfolio comprises general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers, a spectrum of linear, mixed-signal, power management, thermal management, radio frequency (RF), timing, safety, security, wired connectivity and wireless connectivity devices, as well as serial electrically erasable programmable read-only memories (EEPROMs) and serial flash memories.
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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