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

Risk & Volatility

MagnaChip Semiconductor has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500. Comparatively, ON Semiconductor has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Insider & Institutional Ownership

89.5% of MagnaChip Semiconductor shares are owned by institutional investors. Comparatively, 99.8% of ON Semiconductor shares are owned by institutional investors. 3.8% of MagnaChip Semiconductor shares are owned by company insiders. Comparatively, 1.4% of ON Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for MagnaChip Semiconductor and ON Semiconductor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MagnaChip Semiconductor 0 1 1 0 2.50
ON Semiconductor 1 6 11 0 2.56

MagnaChip Semiconductor currently has a consensus target price of $13.00, indicating a potential upside of 12.55%. ON Semiconductor has a consensus target price of $21.44, indicating a potential upside of 11.91%. Given MagnaChip Semiconductor’s higher probable upside, research analysts plainly believe MagnaChip Semiconductor is more favorable than ON Semiconductor.

Profitability

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

Net Margins Return on Equity Return on Assets
MagnaChip Semiconductor -1.24% N/A -6.37%
ON Semiconductor 7.22% 22.97% 6.91%

Earnings and Valuation

This table compares MagnaChip Semiconductor and ON Semiconductor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MagnaChip Semiconductor $687.97 million 0.57 -$29.61 million ($0.52) -22.21
ON Semiconductor $3.91 billion 2.08 $182.10 million $0.92 20.83

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

Summary

ON Semiconductor beats MagnaChip Semiconductor on 11 of the 13 factors compared between the two stocks.

About MagnaChip Semiconductor

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.

About ON Semiconductor

ON Semiconductor Corporation offers a portfolio of sensors, power management, connectivity, custom and system on chip (SoC), analog, logic, timing, and discrete devices. The Company’s segments include Power Solutions Group, Analog Solutions Group and Image Sensor Group. The Power Solutions Group offers a range of discrete, module and integrated semiconductor products. The Analog Solutions Group designs and develops analog, mixed-signal and logic application specific integrated circuits (ASICs) and application specific standard products (ASSPs), and power solutions. The Image Sensor Group designs and develops complementary metal oxide semiconductor (CMOS) and charge-coupled device (CCD) image sensors, as well as proximity sensors, image signal processors, and actuator drivers for autofocus and image stabilization for various end users in the automotive, industrial, consumer, wireless, medical, and aerospace/defense markets.

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