NVIDIA (NVDA) & MagnaChip Semiconductor Corporation (MX) Critical Review
NVIDIA (NASDAQ: NVDA) and MagnaChip Semiconductor Corporation (NYSE:MX) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitabiliy.
NVIDIA pays an annual dividend of $0.56 per share and has a dividend yield of 0.3%. MagnaChip Semiconductor Corporation does not pay a dividend. NVIDIA pays out 18.6% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for NVIDIA and MagnaChip Semiconductor Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MagnaChip Semiconductor Corporation||0||1||2||0||2.67|
NVIDIA currently has a consensus price target of $130.58, indicating a potential downside of 22.03%. MagnaChip Semiconductor Corporation has a consensus price target of $11.17, indicating a potential downside of 1.62%. Given MagnaChip Semiconductor Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe MagnaChip Semiconductor Corporation is more favorable than NVIDIA.
This table compares NVIDIA 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||0.85%||N/A||-4.90%|
Earnings and Valuation
This table compares NVIDIA and MagnaChip Semiconductor Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NVIDIA||$7.54 billion||13.22||$2.44 billion||$3.01||55.64|
|MagnaChip Semiconductor Corporation||$701.57 million||0.55||$29.28 million||($0.03)||-378.33|
NVIDIA has higher revenue and earnings than MagnaChip Semiconductor Corporation. MagnaChip Semiconductor Corporation is trading at a lower price-to-earnings ratio than NVIDIA, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NVIDIA has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, MagnaChip Semiconductor Corporation has a beta of -0.31, indicating that its share price is 131% less volatile than the S&P 500.
Insider & Institutional Ownership
68.8% of NVIDIA shares are owned by institutional investors. Comparatively, 93.0% of MagnaChip Semiconductor Corporation shares are owned by institutional investors. 5.8% of NVIDIA 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, large money managers and hedge funds believe a company is poised for long-term growth.
NVIDIA beats MagnaChip Semiconductor Corporation on 12 of the 17 factors compared between the two stocks.
Nvidia Corporation focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company’s operates through two segments: GPU and Tegra Processor. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s offerings include NVIDIA DGX AI supercomputer, the NVIDIA DRIVE AI car computing platform and the GeForce NOW cloud gaming service.
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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