Himax Technologies (NASDAQ:HIMX – Get Free Report) and GlobalFoundries (NASDAQ:GFS – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
Risk and Volatility
Himax Technologies has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Himax Technologies and GlobalFoundries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Himax Technologies | 0 | 3 | 0 | 0 | 2.00 |
| GlobalFoundries | 1 | 11 | 8 | 0 | 2.35 |
Valuation & Earnings
This table compares Himax Technologies and GlobalFoundries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Himax Technologies | $816.05 million | 4.41 | $43.94 million | $0.20 | 103.25 |
| GlobalFoundries | $6.79 billion | 6.65 | $885.00 million | $1.39 | 58.35 |
GlobalFoundries has higher revenue and earnings than Himax Technologies. GlobalFoundries is trading at a lower price-to-earnings ratio than Himax Technologies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Himax Technologies and GlobalFoundries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Himax Technologies | 3.91% | 3.57% | 1.86% |
| GlobalFoundries | 11.40% | 6.85% | 4.76% |
Institutional & Insider Ownership
69.8% of Himax Technologies shares are held by institutional investors. 31.5% of Himax Technologies shares are held 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.
Summary
GlobalFoundries beats Himax Technologies on 10 of the 14 factors compared between the two stocks.
About Himax Technologies
Himax Technologies, Inc., a fabless semiconductor company, provides display imaging processing technologies in China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States. The company operates in two segments, Driver IC and Non-Driver Products. It offers display driver integrated circuits (ICs) and timing controllers that are used in televisions, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, and other products. The company also provides automotive IC solutions, including traditional driver ICs; advanced in-cell touch and display driver integration; large touch and display driver integration; and local dimming timing controllers, as well as active matrix organic light-emitting diode (AMOLED) solutions, including AMOLED drivers, timing controllers, and touch controller ICs. In addition, it offers application specific IC services; liquid crystal on silicon and micro-electro mechanical system products; Power ICs; complementary metal oxide semiconductor image sensor products; wafer level optics products; 3D sensing products; and ultralow power WiseEye smart image sensing products. The company markets its display drivers to panel manufacturers, mobile device module manufacturers, and manufacturers of end-use products. Himax Technologies, Inc. was incorporated in 2001 and is headquartered in Tainan City, Taiwan.
About GlobalFoundries
GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.
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